Subtitle 1. General Provisions

Chapter 1 General Provisions

Subchapter 1 — General Provisions

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-1-101. Prohibition against center pivot irrigation discharge on interstate.

  1. It is unlawful for a person, sole proprietorship, partnership, or corporation that engages in irrigation of any farm or agricultural lands to intentionally permit or cause any center pivot irrigation water to be discharged onto the traveled portion of any interstate or state highway.
    1. A first violation of this section shall cause a warning to be issued.
    2. Upon conviction of a second or subsequent offense, the offender shall be guilty of a violation and punished by a fine of not less than one hundred dollars ($100) nor more than two hundred fifty dollars ($250).
  2. It is an affirmative defense to prosecution under this section that the discharge of center pivot irrigation waters onto an interstate or state highway resulted from winds of such intensity that no mechanical device that is intended to prevent spray from reaching the roadway could have prevented the spraying or that the discharge resulted from excessive rainfall that contributed to flooding of the roadway.

History. Acts 2001, No. 1753, § 1; 2005, No. 1994, § 2.

Amendments. The 2005 amendment substituted “Upon conviction of a second or subsequent offense, the offender shall be guilty of a violation and punished” for “A second or subsequent offense shall be punishable” in (b)(2).

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2001 Arkansas General Assembly, Agricultural Law, 24 U. Ark. Little Rock L. Rev. 403.

2-1-102. Sustainable agriculture — Definition.

  1. As used in this section, “sustainable” includes without limitation:
    1. Science-based practices supported by research; and
    2. The use of technology that is demonstrated to lead to broad, outcomes-based performance improvements that:
      1. Meet the needs of the present; and
      2. Improve the ability of future generations to meet their needs while advancing progress toward environmental, social, and economic goals and the well-being of agricultural producers and rural communities.
  2. Sustainable agriculture may use continuous improvement principles with goals that include without limitation:
    1. Increasing agricultural productivity;
    2. Improving human health through access to safe, nutritious, and affordable food; and
    3. Enhancing agricultural and surrounding environments, including without limitation water, soil, and air quality, biodiversity, and habitat preservation.
    1. The Department of Agriculture and the State Plant Board shall interpret any administrative rule or federal rule or regulation promulgated by a state or federal agency that establishes standards for harvesting or producing agricultural crops in accordance with the definition and guidelines provided in this section.
    2. This section does not apply to silviculture and any state rules or federal rules or regulations regarding silviculture.

History. Acts 2011, No. 1196, § 1; 2019, No. 315, § 2; 2019, No. 910, § 9.

Amendments. The 2019 amendment by No. 315 inserted “federal rule or” in (c)(1); and substituted “state rules or federal rules or regulations” for “rules or regulations” in (c)(2).

The 2019 amendment by No. 910 substituted “Department of Agriculture” for “Arkansas Agriculture Department” in (c)(1).

Subchapter 2 — Arkansas Young and Beginning Farmer Advisory Board

A.C.R.C. Notes. Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 1, provided:

“(a) The General Assembly finds:

“(1) State government provides vital functions that impact the lives of Arkansas citizens on a daily basis;

“(2) While these functions are important, it is equally important to ensure that state government operates efficiently and effectively to eliminate unnecessary spending of tax dollars and provide timely and quality services to Arkansas citizens; and

“(3) Issues such as the administrative organization of a governmental entity, the appointment structure of a governmental entity's governing board, and extraneous duties assigned to governmental entities hamper the operation of state government and result in unnecessary expenses and delays in the provision of state services.

“(b) It is the intent of this act to amend provisions of law applicable to certain agencies, task forces, committees, and commission to promote efficiency and effectiveness in the operations of state government as a whole.”

Effective Dates. Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 129: May 23, 2016. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the membership and duties of certain agencies, task forces, committees, and commissions and repeals other governmental entities; that these revisions and repeals of governmental entities impact the expenses and operations of state government; and that the provisions of this act should become effective as soon as possible to allow for implementation of the new provisions in advance of the upcoming fiscal year. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

2-1-201 — 2-1-206. [Repealed.]

Publisher's Notes. This subchapter, concerning the Arkansas Young and Beginning Farmer Advisory Board, was repealed by identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 2. The sections were derived from the following sources:

2-1-201. Acts 2003, No. 1760, § 1; 2009, No. 543, § 1.

2-1-202. Acts 2003, No. 1760, § 1; 2005, No. 1962, § 1.

2-1-203. Acts 2003, No. 1760, § 1; 2007, No. 672, § 1.

2-1-204. Acts 2003, No. 1760, § 1; 2007, No. 672, § 1.

2-1-205. Acts 2003, No. 1760, § 1.

2-1-206. Acts 2003, No. 1760, § 1.

Subchapter 3 — Truth in Labeling of Agricultural Products Edible by Humans

A.C.R.C. Notes. Act 2019, No. 501, § 2, provided: “Severability Clause. If any provision of this act or the application of this act to any person or circumstance is held invalid, the invalidity shall not affect the other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end, the provisions of this act are declared severable.”

Publisher's Notes. See also § 25-38-203(b), added by Acts 2019, No. 741, § 2, which concerns labeling of horticultural, viticultural, livestock, and poultry products that are edible by humans and provides for civil penalties.

2-1-301. Legislative purpose.

The purpose of this subchapter is to protect consumers from being misled or confused by false or misleading labeling of agricultural products that are edible by humans.

History. Acts 2019, No. 501, § 1.

2-1-302. Definitions.

As used in this subchapter:

  1. “Agricultural product” means a horticultural, viticultural, forestry, dairy, livestock, poultry, or bee product or any other farm, ranch, plantation, or range product;
  2. “Beef” means the flesh of a domesticated bovine, such as a steer or cow, that is edible by humans;
  3. “Beef product” means an agricultural product that is edible by humans and produced in whole or in part from beef, including without limitation beef jerky, beef patties, chopped beef, fabricated steak, hamburger, ground beef, ribs, and roast;
  4. “Label” means a display of written, printed, or graphic matter upon or affixed to the container or wrapper in which an agricultural product that is edible by humans is offered for direct retail sale;
  5. “Labeling” means the act of identifying, describing, or advertising an agricultural product that is edible by humans by means of the label or through other means;
  6. “Livestock” means swine, bovines, sheep, and goats;
    1. “Meat” means a portion of a livestock, poultry, or cervid carcass that is edible by humans.
    2. “Meat” does not include a:
      1. Synthetic product derived from a plant, insect, or other source; or
      2. Product grown in a laboratory from animal cells;
  7. “Meat product” means an agricultural product that is edible by humans and made wholly or in part from meat or another portion of a livestock, poultry, or cervid carcass;
  8. “Misbrand” means to identify an agricultural product edible by humans in a false or misleading way;
  9. “Misrepresent” means to use any untrue, misleading, or deceptive oral or written statement, advertising, label, display, picture, illustration, or sample;
  10. “Person” means an individual, partnership, limited liability company, limited liability partnership, corporation, firm, company, or other entity doing business in Arkansas;
  11. “Pork” means the flesh of a domesticated swine that is edible by humans;
  12. “Pork product” means an agricultural product that is edible by humans and produced in whole or in part from pork, including without limitation bacon, bratwurst, ground pork, ham, pork chops, ribs, roast, and sausage;
  13. “Poultry” means domestic birds that are edible by humans; and
  14. “Rice” means the whole, broken, or ground kernels or by-products obtained from the species Oryza sativa L. or Oryza glaberrima, or wild rice, which is obtained from one (1) of the four (4) species of grasses from the genus Zizania or Porteresia.

History. Acts 2019, No. 501, § 1.

2-1-303. Applicability.

This subchapter applies only to a person that places a label on an agricultural product that is edible by humans.

History. Acts 2019, No. 501, § 1.

2-1-304. Administration.

The Director of the Arkansas Bureau of Standards shall:

  1. Administer and enforce this subchapter;
  2. Promulgate rules to implement the purposes and requirements of this subchapter; and
  3. Receive and investigate complaints regarding alleged violations of this subchapter and the rules promulgated by the director.

History. Acts 2019, No. 501, § 1.

2-1-305. Prohibited activities.

A person shall not misbrand or misrepresent an agricultural product that is edible by humans, including without limitation by:

  1. Affixing a label that is false or misleading;
  2. Selling the agricultural product under the name of another food;
  3. Omitting information required under § 20-56-209 from the label;
  4. Placing information on the label in a way that does not conform with the requirements under § 20-56-209;
  5. Representing the agricultural product as a food for which a definition and standard of identity has been provided by regulations under § 20-56-219 or by the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq., as it existed on January 1, 2019, unless:
    1. The agricultural product conforms to the definition and standard; and
    2. The label of the agricultural product bears the name of the food specified in the definition and standard and includes the common names of optional ingredients other than spices, flavoring, and coloring present in the food as regulations require;
  6. Representing the agricultural product as meat or a meat product when the agricultural product is not derived from harvested livestock, poultry, or cervids;
  7. Representing the agricultural product as rice when the agricultural product is not rice;
  8. Representing the agricultural product as beef or a beef product when the agricultural product is not derived from a domesticated bovine;
  9. Representing the agricultural product as pork or a pork product when the agricultural product is not derived from a domesticated swine;
  10. Utilizing a term that is the same as or similar to a term that has been used or defined historically in reference to a specific agricultural product; or
  11. Affixing a label that uses a variation of rice in the name of the agricultural product when the agricultural product is not rice or derived from rice.

History. Acts 2019, No. 501, § 1.

2-1-306. Civil penalty.

    1. A person that violates § 2-1-305 shall be fined an amount not to exceed one thousand dollars ($1,000) for each violation.
    2. Each item that violates § 2-1-305 constitutes a separate violation subject to the civil penalty provided in subdivision (a)(1) of this section.
    1. A person subject to a civil penalty under subsection (a) of this section may request an administrative hearing within ten (10) calendar days after receipt of the notice of the penalty.
    2. Upon request, the Director of the Arkansas Bureau of Standards shall conduct a hearing after giving appropriate notice to the person, and the decision of the director is subject to appropriate judicial review.
      1. If a person subject to a civil penalty under subsection (a) of this section has exhausted all administrative appeals and the civil penalty has been upheld, the person or entity shall pay the civil penalty within twenty (20) calendar days after the effective date of the final decision.
      2. If the person fails to pay the civil penalty as required under this section, a civil action may be brought by the director in a court of competent jurisdiction to recover the civil penalty.
      3. A civil penalty collected under this section shall be deposited into the Plant Board Fund.
  1. The director may waive a civil penalty for a violation of § 2-1-305 if:
    1. He or she determines that the violation was accidental, erroneous, or unintentional; or
    2. The person that violated § 2-1-305 publicly acknowledges the violation and issues a voluntary recall for the mislabeled products.

History. Acts 2019, No. 501, § 1.

Chapter 2 Agricultural Cooperative Associations

Cross References. Wildlife causing crop damage, § 15-44-114.

Research References

Am. Jur. 18 Am. Jur. 2d, Coop. Asso., § 1 et seq.

Ark. L. Notes.

Matthews, Agricultural Cooperatives in Arkansas — Abuse of Discretion in Retiring Equity, 1985 Ark. L. Notes 79.

Ark. L. Rev.

Organization of Agricultural Marketing Cooperatives, 5 Ark. L. Rev. 173.

Fee and Hoberg, Potential Liability of Directors of Agricultural Cooperatives, 37 Ark. L. Rev. 60.

C.J.S. 3 C.J.S., Agri., § 169 et seq.

U. Ark. Little Rock L.J.

Mathews, Corporate Statutes — Which One Applies?, 13 U. Ark. Little Rock L.J. 83.

Subchapter 1 — General Provisions

Cross References. Cooperative associations, § 4-30-101 et seq.

Liability of cooperatives for torts, § 4-30-118.

Taxation exemption of receipts from sale of certain agricultural products, § 26-52-405.

Effective Dates. Acts 1963, No. 90, § 2: Feb. 27, 1963. Emergency clause provided: “It is hereby found and determined by the General Assembly that newly established regulations of the federal government are working undue hardships on a number of cooperatives organized under the laws of this state; that such hardships are the result of existing provisions of laws of this state governing such cooperatives; and, that the immediate passage of this act is necessary to make the needed changes in the laws governing such cooperatives in order to remove such hardships. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1969, No. 311, § 3: Mar. 24, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that additional revenues will be needed during the next biennium to maintain the present level of state services; that thousands of dollars are being lost in revenues to this state through special exemptions and exclusions contained in the various tax laws of this state; and that in order to remove these exemptions and exclusions and thereby increase the revenues from such sources, it is necessary that this act become effective immediately. Therefore, an emergency is hereby declared to exist and this act, being necessary for the immediate preservation of the public peace, health and safety shall become effective from and after its passage and approval.”

Case Notes

Cited: Jefferson Coop. Gin, Inc. v. Milam, 255 Ark. 479, 500 S.W.2d 932 (1973); Conway County Farmers Ass'n v. United States, 588 F.2d 592 (8th Cir. 1978).

2-2-101. Purpose.

  1. The purposes of this subchapter are to provide for:
    1. The formation and operation of agricultural cooperative associations; and
    2. The rights, powers, liabilities, and duties of cooperative associations.
  2. Associations organized under this subchapter shall be deemed to be nonprofit, inasmuch as they are not organized for the purpose of making profits for themselves or for their members as proprietors, but only for their members as patrons and employees of the associations.

History. Acts 1939, No. 153, § 1; A.S.A. 1947, § 77-1001.

Case Notes

Cited: Two Bros. Farm v. Riceland Foods, Inc., 57 Ark. App. 25, 940 S.W.2d 889 (1997).

2-2-102. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Agricultural products” means horticultural, viticultural, forestry, dairy, livestock, poultry, bee, and any other farm, ranch, plantation, and range products;
  2. “Association” means any association organized under this subchapter;
  3. “Member” means a member of record as determined under the articles of association and bylaws of an association. The term “member” shall include the holder of a membership in an association without capital stock and the holder of common stock in an association organized with capital stock; and
  4. “Person” means individuals, firms, partnerships, corporations, and associations.

History. Acts 1939, No. 153, § 2; 1981, No. 121, § 1; A.S.A. 1947, § 77-1002.

2-2-103. Construction.

  1. Any provisions of law which otherwise would be in conflict with this subchapter shall not be construed as applying to an association provided for in this subchapter.
  2. No provision of law shall be deemed to be repealed by this subchapter.
  3. This subchapter shall not affect the provisions of the Cooperative Marketing Act, § 2-2-401 et seq.

History. Acts 1939, No. 153, § 26; A.S.A. 1947, § 77-1025.

2-2-104. Who may organize.

Any number of persons, not less than five (5), who are engaged in the production of agricultural commodities may form a cooperative association with or without capital stock under the provisions of this subchapter.

History. Acts 1939, No. 153, § 3; A.S.A. 1947, § 77-1003.

2-2-105. Reasons for organizing.

An association may be organized to engage in any agricultural or related activity, including, but without limitation, any activity in connection with the producing, marketing, selling, harvesting, dairying, preserving, drying, processing, canning, packing, milling, ginning, compressing, storing, transporting, handling, or utilization of any agricultural or forestry products produced by it or delivered to it by its members or others; with the manufacturing or marketing of the by-products thereof, or in connection with the purchase, hiring, or use by it or its members or others of supplies, machinery, or equipment; in the acquisition or improvement of land; in the construction or maintenance of houses, barns, sheds, or facilities for its use or the use of its members; for indemnifying or replacing damaged, lost, or destroyed livestock or other tangible personal property pertaining to agriculture belonging to its members; in burial activities; or the furnishing of medical, dental, health, hospitalization, nursing, or any related services, or medicines or medical supplies to its members and their families.

History. Acts 1939, No. 153, § 4; A.S.A. 1947, § 77-1004.

2-2-106. Powers.

Each association incorporated under this subchapter shall have the following powers:

  1. To engage in any activity in connection with any agricultural or related activity, including, but without limitation, any activity in connection with the producing, marketing, selling, harvesting, dairying, preserving, drying, processing, canning, packing, milling, ginning, compressing, storing, transporting, handling, or utilization of any agricultural or forestry products produced by it or delivered to it by its members or others; with the manufacturing or marketing of the by-products thereof; in connection with the purchase, hiring, or use by it or its members or others of supplies, machinery, or equipment; in the acquisition or improvement of land; in the construction or maintenance of houses, barns, sheds, or facilities for its use or the use of its members; for indemnifying or replacing damaged, lost, or destroyed livestock or other tangible personal property pertaining to agriculture belonging to its members; in burial activities; or the furnishing of medical, dental, health, hospitalization, nursing, or any related services, or medicines or medical supplies to its members and their families;
  2. To borrow money and to make advances to members;
    1. To establish funds in pools for the purposes of indemnifying or replacing damaged, lost, or destroyed livestock or other tangible personal property pertaining to agriculture belonging to members.
    2. Associations organized under this subchapter which shall engage in the activities enumerated in this subdivision (3) shall not be deemed to be insurance companies and shall not be subject to the insurance laws of Arkansas;
  3. To purchase or otherwise acquire and to hold, own, and exercise all rights of ownership in, and to sell, transfer, or pledge or guarantee the payment of dividends or interest on, or the retirement or redemption of shares of the capital stock or bonds of any corporation or association engaged in any related activity or in the production, warehousing, handling, or marketing of any of the products of the type handled by the association;
  4. To establish reserves and to invest those funds in bonds or such other property as may be provided in the bylaws;
  5. To purchase or otherwise acquire or to buy, hold, and exercise all privileges of ownership or tenancy over such real and personal property as may be necessary or convenient for the conducting and operating of any of the business of the association or incidental thereto;
    1. To arrange medical, dental, health, surgical, nursing, hospitalization, and related services and benefits for the members and families of the members.
    2. Associations organized under this subchapter for the purposes specified in this subdivision (7) shall not be deemed to be insurance companies and shall not be subject to the insurance laws of Arkansas;
    1. To do each and every thing necessary, suitable, or proper for the accomplishment of any of the purposes or the attainment of any one (1) or more of the objects enumerated in this section, or conducive to or expedient for the interest or benefit of the association, and to contract accordingly.
    2. In addition, to exercise and possess all powers, rights, and privileges necessary or incidental to the purposes for which the association is organized or to the activities in which it is engaged, and to do any such thing anywhere;
  6. To contract and to sue and be sued; and
  7. To act as agent or representative of any members or others in any of the activities enumerated in this section.

History. Acts 1939, No. 153, § 6; A.S.A. 1947, § 77-1006.

Case Notes

Wine Manufacturer.

The manufacture of wine does not come within the purview of this section. Altus Coop. Winery v. Morley, 218 Ark. 492, 237 S.W.2d 481 (1951).

2-2-107. Members.

    1. Under the terms and conditions prescribed in its bylaws, an association formed under this subchapter may admit any persons as members who are engaged in the production of agricultural commodities, including the lessees and tenants of lands used for production of agricultural commodities and lessors and landlords who receive as rent all or part of the crops raised on the leased premises, and issue certificates of common stock or membership to them.
    2. Certificates of stock or membership shall not be transferable except as provided in the articles of association or the bylaws. No person shall otherwise acquire, by operation of law or otherwise, the benefits of membership except as provided in this subchapter.
  1. If a member of any association organized under this subchapter is other than a natural person, the member may be represented by any individual, associate, officer, manager, or member thereof, duly authorized in writing.

History. Acts 1939, No. 153, § 7; A.S.A. 1947, § 77-1007.

Case Notes

Sharecroppers and Tenants.

Sharecropper who received part of proceeds of cotton crop delivered to cooperative gin would, under articles and bylaws of association, share in the patronage payments regardless of whether he or she was a stockholder or member of the cooperative, in the absence of any contract to the contrary. Houck v. Birmingham, 217 Ark. 449, 230 S.W.2d 952 (1950).

Sharecroppers and tenants were entitled to claim refunds where cotton gin cooperative realized a profit. Collie v. Coleman, 223 Ark. 206, 265 S.W.2d 515 (1954).

2-2-108. Articles of association.

  1. Each association formed under this subchapter must prepare and file articles of association, setting forth:
    1. The name of the association;
    2. The purposes for which it is formed;
    3. The place where its principal business will be transacted, which shall be its domicile;
    4. The term for which it is to exist, which may be perpetual;
    5. The number of directors thereof, which must not be fewer than five (5) and may be any number in excess thereof, and the term of office of the directors;
    6. If organized without capital stock, the classes of membership, if more than one (1) class of membership is authorized, and the rules determining the property rights of all classes of members in the event of dissolution; and
      1. If organized with capital stock, the amount of stock and the number of shares into which it is divided and the par value thereof.
        1. The capital stock may be divided into preferred and common stock.
        2. If so divided, the articles of association must contain a statement of the number of shares of stock to which preference is granted, the nature and definite extent of the preference and privileges granted to each, and the number of shares of stock to which no preference is granted.
  2. The articles must be subscribed by the incorporators and acknowledged by them before an officer authorized by the law of this state to take and certify acknowledgments. They shall be filed and recorded in the office of the Secretary of State.

History. Acts 1939, No. 153, § 8; A.S.A. 1947, § 77-1008.

2-2-109. Amendments to articles.

  1. The articles of association may be altered or amended at any regular or special meeting of the stockholders or members called for that purpose.
  2. Amendments to the articles of association, when so adopted, shall be certified by the president and secretary of the association and shall be filed with the Secretary of State.

History. Acts 1939, No. 153, § 9; A.S.A. 1947, § 77-1009.

2-2-110. Bylaws — Amendment of articles or bylaws.

    1. Each association incorporated under this subchapter must adopt for its government and management a code of bylaws not inconsistent with the articles of association or the powers granted in this subchapter.
    2. A majority vote of the incorporators and members or stockholders or their written assent is necessary to adopt the bylaws.
    3. Each association under its bylaws may provide without limitation for any or all of the following matters:
      1. The time, place, and manner of calling and conducting its meetings;
      2. The number of stockholders or members constituting a quorum;
        1. The right of members or stockholders to vote; and
        2. The conditions, manner, form, and effect of such votes;
      3. The number of directors constituting a quorum;
        1. The qualifications, duties, and terms of office of directors and officers;
        2. The time of their election; and
        3. The mode and manner of giving notice thereof;
      4. Penalties for violations of the bylaws;
      5. The form and manner of amendment of bylaws;
        1. The amount of entrance, organization, and membership fees, if any;
        2. The manner and method of collection of the fees; and
        3. The purposes for which they may be used;
        1. The amount which each member or stockholder shall be required to pay annually or from time to time, if at all, to carry on the business of the association;
        2. The charge, if any, to be paid by each member or stockholder for services rendered by the association to him or her and the time of payment and the manner of collection; and
        3. The producing, marketing, renting, leasing, or other contract between the association and its members or stockholders, which every member or stockholder may be required to sign; and
        1. The qualifications of members or stockholders of the association and the conditions precedent to membership or ownership of common and preferred stock;
        2. The method, time, and manner of permitting members to withdraw;
        3. The manner of assignment and transfer of the interest of members and of the shares of common and preferred stock;
        4. The conditions upon which and the time when membership of any member shall cease;
        5. The mode, manner, and effect of the expulsion of a member;
        6. The manner of determining the value of a member's or stockholder's interest and the provision for its purchase by the association upon the death or withdrawal of a member or stockholder or upon the expulsion of a member or forfeiture of his or her membership;
        7. The method, time, and manner of allotment and distribution of surpluses;
        8. The manner and method of removal from office of any officer or director of the association; and
        9. The manner and method of filling vacancies.
    1. For the purpose of amending the articles of association or for the purpose of amending the bylaws of the association, or for both purposes, a quorum for any stockholders' meeting for all associations organized under this subchapter shall be members or voting stockholders representing five percent (5%) of the voting power of the association who shall be present in person or voting by proxy.
    2. As to all other association business, the quorum established by the stockholders or members as authorized in subdivision (a)(3)(B) of this section, which may include members or stockholders voting in person or by proxy, shall govern.
  1. For the purpose of amending articles of association or for the purpose of amending bylaws of the association, or for both purposes, a majority vote of the votes cast at a meeting at which a quorum is present, in person or by proxy, shall be sufficient to adopt amendments.

History. Acts 1939, No. 153, § 10; 1963, No. 90, § 1; 1983, No. 163, § 1; A.S.A. 1947, § 77-1010.

Case Notes

Cited: Robertson v. White, 635 F. Supp. 851 (W.D. Ark. 1986).

2-2-111. Regular and special meetings.

  1. In its bylaws, each association shall provide for one (1) or more regular meetings annually.
    1. The board of directors shall have the right to call a special meeting at any time. Members or stockholders holding ten percent (10%) of the voting power may file a petition with the chair of the board stating the specific business to be brought before the association and demand a special meeting at any time.
    2. These meetings must be called by the board.
    1. Notice of all meetings, together with a statement of the purposes thereof, shall be mailed to each member at least five (5) days before the meeting.
    2. The bylaws may require instead that the notice may be given by publication in a newspaper of general circulation, published at the principal place of business of the association. If no newspaper is published at that place, notice may be given in a newspaper having circulation at the principal place of business of the association.

History. Acts 1939, No. 153, § 11; 1983, No. 163, § 2; A.S.A. 1947, § 77-1011.

2-2-112. Board of directors.

    1. The affairs of the association shall be managed by a board of not less than five (5) directors.
        1. The bylaws may provide that the territory in which the association has members shall be divided into districts and that the directors shall be elected according to the districts.
        2. In such cases, the bylaws shall specify the number of directors to be elected by each district and the manner and method of reapportioning the directors and redistricting the territory covered by the association. The bylaws may provide for a quorum of the directors in each district.
      1. The bylaws may provide that primary elections should be held in each district to elect the directors apportioned to the districts, and the results of all the primary elections must be ratified by the next regular meeting of the association or may be considered final as to the association.
  1. The bylaws may provide that one (1) or more directors may be appointed by the Governor, the Dean of the College of Agriculture of the University of Arkansas at Fayetteville, or any other designated federal or state public official or commission.
    1. Where not otherwise prohibited by the bylaws, the directors of the association may provide a fair remuneration for the time actually spent by its officers, directors, and employees in its service.
    2. No director, during the term of his or her office, shall be a party to a contract for profit with the association differing in any way from the business relations accorded regular members or holders of common stock of the association.
  2. The bylaws may provide for an executive committee and may allot to the committee all the functions and powers of the board of directors, subject to the general direction and control of the board.

History. Acts 1939, No. 153, § 12; A.S.A. 1947, § 77-1012.

2-2-113. Officers.

  1. The board of directors shall elect a president, one (1) or more vice presidents, a secretary, and a treasurer, and they may combine the two (2) latter officers and designate the combined office as secretary-treasurer.
    1. The treasurer may be a bank or any depository, and as such shall not be considered as an officer but as a functionary of the board.
    2. In such case, the secretary shall perform the usual accounting duties of the treasurer, excepting that the funds shall be deposited only as authorized by the board.

History. Acts 1939, No. 153, § 13; A.S.A. 1947, § 77-1013.

Case Notes

Cited: Robertson v. White, 635 F. Supp. 851 (W.D. Ark. 1986).

2-2-114. Certificates of membership or stock.

  1. When a member of an association established without capital stock has paid his or her membership fee in full, he or she shall receive a certificate of membership.
  2. Except for debts lawfully contracted between the member and the association, no member shall be liable for the debts of the association to an amount exceeding the sum remaining unpaid on his or her membership fee or his or her subscription to the capital stock, including any unpaid balance on any promissory notes given in payment thereof.
    1. Unless provided otherwise in the articles of association or bylaws of an association, no member or stockholder shall be entitled to more than one (1) vote.
    2. In an election for directors, the number of votes a member or stockholder is entitled to cast may be multiplied by the number of directors being elected. The member or stockholder may distribute the votes among as many candidates as he or she shall see fit.
  3. Any provision of this subchapter or any other law which is applied to an association organized under this subchapter, referring to requirements for a vote or quorum based on a total number or proportion of members or stockholders, shall mean the number or proportion of the votes entitled to be cast by the members or stockholders where an association's articles of association or bylaws entitle any member to more than one (1) vote.
  4. For purposes of this subchapter or any other law which is applied to an association formed under this subchapter, if permitted by the articles of association or the bylaws of the association, any vote of a member or stockholder may be made in person or by proxy and may be counted in the establishment of a quorum.
    1. No stockholder of a cooperative association organized under this subchapter shall own more than one-twentieth (1/20) of the common stock of the association or more than one (1) share of common stock if there are fewer than twenty (20) common stockholders.
    2. Such an association, in its bylaws, may limit the amount of common stock which one (1) member may own to any amount less than one-twentieth (1/20) of the common stock.
    1. Any association organized with stock under this subchapter may issue preferred stock, with or without the right to vote.
    2. The stock may be redeemable or retirable by the association on such terms and conditions as may be provided for by the articles of association and printed on the face of the certificate.
      1. No association shall issue stock or a membership certificate to a member until it has been fully paid for.
      2. The promissory notes of the members may be accepted by the association as full or partial payment.
    1. The association shall hold the stock or membership certificate as security for the payment of the note, but such retention as security shall not affect the member's right to vote.

History. Acts 1939, No. 153, § 14; 1983, No. 163, § 3; A.S.A. 1947, § 77-1014.

2-2-115. Matters referred to membership.

Upon demand of one-third (1/3) of the entire board of directors, any matter that has been approved or passed by the board must be referred to the entire membership or the stockholders for decision at the next special or regular meeting. A special meeting may be called for that purpose.

History. Acts 1939, No. 153, § 15; A.S.A. 1947, § 77-1015.

2-2-116. Marketing contracts — Participation agreements.

    1. Upon resolution adopted by its board of directors, any association may enter into all necessary and proper contracts and agreements and make all necessary and proper stipulations, agreements, contracts, and arrangements with its members, other persons, cooperatives, corporations, or associations formed in this or any other state for the cooperative and more economical carrying on of its business or any parts of its business.
    2. Any two (2) or more associations by agreement between them may unite in employing and using or may expressly employ and use the same methods, means, and agencies for carrying on and conducting their respective businesses.
  1. In addition to or in lieu of the marketing contracts authorized in subsection (a) of this section, the association and its members or others may make and execute any other type of participation agreement in cases in which the association will engage in other than marketing activities as authorized under this subchapter.

History. Acts 1939, No. 153, § 16; A.S.A. 1947, § 77-1016.

Case Notes

Agency.

Contract between taxpayer and cooperative association to defer payment for rice could be construed as establishing association as taxpayer's agent rather than providing for sale of rice to association. Oliver v. United States, 193 F. Supp. 930 (E.D. Ark. 1961).

Rental Contracts.

Sharecroppers and tenants were entitled to claim refunds where cotton gin cooperative company realized a profit; where rental contracts were silent as to refunds, burden of proof was upon principal stockholder landlord to show that tenants waived refunds. Collie v. Coleman, 223 Ark. 206, 265 S.W.2d 515 (1954).

2-2-117. Remedies for breach of bylaws or contracts.

    1. The bylaws or the marketing or participation contract of any association existing under this subchapter may fix specific sums as liquidated damages to be paid by the member or stockholder to the association upon the breach or threatened breach by him or her of any provision of the participation agreement or upon the breach or threatened breach by him or her of any provision of the marketing contract regarding the sale or delivery or withholding of products.
    2. These instruments may further provide that the member will pay all costs, premiums for bonds, expenses, and fees in case any action is brought upon the contract by the association.
    3. These provisions shall be valid and enforceable in the courts of this state, and the clauses providing for liquidated damages shall be enforceable as such and shall not be regarded as penalties.
    1. In the event of any breach or threatened breach of the marketing contract by a member or other person, the association shall be entitled to an injunction to prevent the breach or further breach of the contract and to a decree of specific performance of the contract.
      1. Pending the adjudication of the action and upon filing a verified complaint showing the breach or threatened breach and upon filing a bond in the sum of one hundred dollars ($100), the association shall be entitled to an injunction against the member or other person.
      2. The judge, in his or her discretion, may increase the bond to five hundred dollars ($500), after a hearing on five (5) days' notice to the parties if justice demands an increase in the amount of the bond.
  1. In any civil action, upon any marketing contract of any member with any association existing under this subchapter, it shall be conclusively presumed that the products produced by any person, firm, or corporation during the period of time covered by the marketing contract, on the land of the member, however and by whomsoever produced, are the products of the member. As such, the products of the member are subject to the marketing contract if the products have been grown or acquired under any contract between the member and the other person, firm, or corporation entered into after the execution of the marketing contract. In such actions, the remedies for nondelivery or breach shall lie and be enforceable against the persons, firms, or corporations.

History. Acts 1939, No. 153, § 17; A.S.A. 1947, § 77-1017.

Case Notes

Res Judicata.

Where an action was brought under this subchapter and the matters relating thereto were finally determined adversely to the appellant on a prior appeal, it became the law of the case and a second case could not be considered. Collie v. Coleman, 226 Ark. 692, 292 S.W.2d 80 (1956).

2-2-118. Penalties for inducing breach of contract.

Any person or any corporation whose officers or employees knowingly induce or attempt to induce any person to breach his or her marketing or participation contract with an association shall be guilty of a violation and upon conviction shall be subject to a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for the offense and shall be liable to the association aggrieved in a civil suit in the penal sum of five hundred dollars ($500) for each offense.

History. Acts 1939, No. 153, § 21; A.S.A. 1947, § 77-1021; Acts 2005, No. 1994, § 3.

Amendments. The 2005 amendment substituted “violation and upon conviction” for “misdemeanor”.

2-2-119. General corporation laws.

The provisions of the general corporation laws of this state, and all powers and rights thereunder, shall apply to the associations organized under this subchapter, except where the provisions are in conflict with or inconsistent with the express provisions of this subchapter.

History. Acts 1939, No. 153, § 18; A.S.A. 1947, § 77-1018.

Cross References. Business Corporation Act of 1987, § 4-27-101 et seq.

General corporation laws, § 4-26-101 et seq.

Case Notes

Cited: Robertson v. White, 635 F. Supp. 851 (W.D. Ark. 1986).

2-2-120. Interest in similar entities.

An association organized or existing under this subchapter may organize, form, operate, own, control, have an interest in, own stock of, or be a member of any corporation or association, with or without capital stock, engaged in any of the activities authorized under this subchapter, whether formed under this subchapter or any other law of this or any other state.

History. Acts 1939, No. 153, § 19; A.S.A. 1947, § 77-1019.

2-2-121. Existing entities may participate.

    1. Any corporation or association organized under previously existing statutes for purposes authorized in this subchapter, which are otherwise eligible under the provisions of this subchapter, may be brought under the provisions of this subchapter by a majority vote of its stockholders or members.
      1. It shall make out in duplicate a statement signed and sworn to by the president or vice president and secretary to the effect that the corporation or association has decided, by a majority vote of its stockholders or members, to accept the benefits and be bound by the provisions of this subchapter. The statement shall be filed with the charter or articles of association.
      2. The charter or articles of association of the corporation or association shall be amended, if necessary, to comply with the provisions of this subchapter. The charter or articles of association shall be filed as required in this subchapter, except that they shall be signed by a majority of the members of the board of directors.
  1. The bylaws of the corporation or association shall also be amended, if necessary, to comply with the provisions of this subchapter.
  2. The filing fee for filing the statement and charter or articles of association shall be the same as for filing an amendment to the articles of association.

History. Acts 1939, No. 153, § 20; A.S.A. 1947, § 77-1020.

2-2-122. Arrangements not in restraint of trade.

No association organized or existing under this subchapter shall be deemed to be a combination in restraint of trade or an illegal monopoly or an attempt to lessen competition or fix prices arbitrarily, nor shall the marketing or participation contracts or agreements between the association and its members or others or any agreements authorized by this subchapter be considered illegal or in restraint of trade.

History. Acts 1939, No. 153, § 22; A.S.A. 1947, § 77-1022.

2-2-123. Annual license fee — Taxation.

  1. Each association organized or existing under this subchapter shall pay an annual license fee of ten dollars ($10.00) to the Secretary of State.
    1. In addition, each association shall be subject to the Arkansas Gross Receipts Act of 1941, as amended, § 26-52-101 et seq., and the Arkansas Compensating Tax Act of 1949, as amended, § 26-53-101 et seq., and all other taxes levied in this state. However, any association which immediately distributes at the close of each business year all surpluses by cash or certificate to its members shall not be subject to the Income Tax Act of 1929, § 26-51-101 et seq., with respect to the income.
    2. Each association shall be subject to taxes upon its real estate and personal property.

History. Acts 1939, No. 153, § 24; 1969, No. 311, § 1; A.S.A. 1947, § 77-1023.

Case Notes

Tax Exemptions.

To be exempt from license and privilege taxes, an association must be acting within powers granted to it. Altus Coop. Winery v. Morley, 218 Ark. 492, 237 S.W.2d 481 (1951).

Nonprofit agriculture cooperative was exempt from the corporate franchise tax although 1969 amendment to this section removed cooperative's exemptions from some other state taxes, as tax statute must be made expressly applicable to entity and mere removal of some tax exemptions did not allow levying of franchise tax on nonprofit cooperative. Jefferson Coop. Gin, Inc. v. Milam, 255 Ark. 479, 500 S.W.2d 932 (1973).

Tax on Winery.

Association is not entitled to manufacture wine from grapes grown by its members and then sell the wine at wholesale without paying privilege taxes imposed on other wineries. Altus Coop. Winery v. Morley, 218 Ark. 492, 237 S.W.2d 481 (1951).

2-2-124. Filing fees.

For filing articles of association, an association organized under this subchapter shall pay five dollars ($5.00), and it shall pay two dollars and fifty cents ($2.50) for filing an amendment to the articles.

History. Acts 1939, No. 153, § 25; A.S.A. 1947, § 77-1024.

Subchapter 2 — Cotton Associations

Effective Dates. Acts 1939, No. 12, § 3: effective on passage.

2-2-201. Membership.

  1. A person, firm, or corporation shall become a member of a cotton cooperative association organized and domesticated under the laws of the State of Arkansas only when the membership contract shall be in duplicate and shall state the time of the duration of each contract signed both by the member and the association.
  2. The signature of any person on a draft or check containing conditions which purport to make a person a member of a cotton cooperative association as a prerequisite to obtaining money on any draft or check given to him or her for any cotton which he or she has sold or pledged to any cotton cooperative association shall not be construed as making the person a member of the association, even though he or she has signed or endorsed the check or draft.

History. Acts 1939, No. 12, § 1; 1939, No. 202, § 1; A.S.A. 1947, § 77-1026.

2-2-202. Penalty.

  1. Any person, firm, or corporation violating any provision of § 2-2-201 shall be guilty of a Class A misdemeanor.
  2. Each violation of any provision of § 2-2-201 shall be deemed a separate offense.

History. Acts 1939, No. 12, § 1-A; 1939, No. 202, § 1-A; A.S.A. 1947, § 77-1027; Acts 2005, No. 1994, § 330.

Amendments. The 2005 amendment substituted “a Class A misdemeanor” for “a misdemeanor and, upon conviction, punished by a fine of not less than one hundred dollars ($100) and not more than one thousand dollars ($1,000) or by imprisonment of a period of not less than thirty (30) days or not more than six (6) months, or both, in the discretion of the court” in (a).

Subchapter 3 — Merger and Consolidation

2-2-301. Applicability.

Except as otherwise provided in this subchapter, the provisions of this subchapter shall apply exclusively to the merger, consolidation, mortgage, sale, and lease of assets of and by an association subject to the provisions of this subchapter.

History. Acts 1981, No. 121, § 13; A.S.A. 1947, § 77-1039.

2-2-302. Provisions supplemental.

  1. The provisions of this subchapter shall be supplemental to, and part of, §§ 2-2-101 — 2-2-124, 2-2-201, and 2-2-202, and legislation amendatory and supplemental to these provisions relating to agricultural cooperative associations.
  2. The definitions of terms in § 2-2-102 shall be equally applicable with respect to terms used in this subchapter.

History. Acts 1981, No. 121, § 14; 1985, No. 385, § 10; A.S.A. 1947, § 77-1040.

2-2-303. Procedure for merger.

  1. Any two (2) or more domestic associations created under § 2-2-101 et seq. may merge into one (1) of these associations under a plan of merger approved in the manner provided in this subchapter.
  2. The board of directors of each association shall, by resolution adopted by each board, approve a plan of merger setting forth:
    1. The names of the associations proposing to merge and the name of the association into which they propose to merge, which is designated as the “surviving association”;
    2. The terms and conditions of the proposed merger;
    3. The manner and basis of converting the shares, patronage, or other interests of each merging association into shares or other interests of the surviving association;
    4. A statement of any changes in the articles of incorporation of the surviving association to be affected by the merger;
    5. The time when the merger shall become effective; and
    6. Such other provisions with respect to the proposed merger as are deemed necessary or desirable.

History. Acts 1981, No. 121, § 2; A.S.A. 1947, § 77-1028.

2-2-304. Procedure for consolidation.

  1. Any two (2) or more domestic associations created under § 2-2-101 et seq. may consolidate into a new association under a plan of consolidation approved in the manner provided in this subchapter.
  2. The board of directors of each association by a resolution adopted by each board shall approve a plan of consolidation setting forth:
    1. The names of the associations proposing to consolidate, and the name of the new association into which they propose to consolidate, which is designated as the “new association”;
    2. The terms and conditions of the proposed consolidation;
    3. The manner and basis of converting the shares, patronage, or other interests of each association into shares or other interests of the new association;
    4. With respect to the new association, all of the statements required to be set forth in articles of incorporation for associations organized under this subchapter;
    5. The time when the consolidation shall become effective; and
    6. Such other provisions with respect to the proposed consolidation as are deemed necessary or desirable.

History. Acts 1981, No. 121, § 3; A.S.A. 1947, § 77-1029.

2-2-305. Approval by members — Abandonment.

    1. Upon approving the plan of merger or plan of consolidation, the board of directors of each association by resolution shall direct the plan be submitted to a vote at a meeting of members, which may be either an annual or a special meeting.
      1. Written or printed notice shall be given to each member not less than twenty (20) days before the meeting, in the manner provided in this subchapter for the giving of notice of meetings to members, and shall state the purpose of the meeting, whether the meeting is an annual or a special meeting.
      2. A copy or a summary of the plan of merger or plan of consolidation, as the case may be, shall be included in or enclosed with the notice.
    1. At each meeting, a vote of the members shall be taken on the proposed plan of merger or consolidation.
    2. Each member of each association shall be entitled to vote on the proposed plan of merger or consolidation.
    3. The plan of merger or consolidation shall be approved upon receiving the affirmative vote of at least two-thirds (2/3) of the votes cast at the meeting in which members holding not less than fifty percent (50%) of the voting power of the association are represented in person or by proxy.
  1. After approval by a vote of the members of each association and at any time before the filing of the articles of merger or consolidation, the merger or consolidation may be abandoned under provisions, if any, set forth in the plan of merger or consolidation.

History. Acts 1981, No. 121, § 4; 1983, No. 163, § 4; A.S.A. 1947, § 77-1030.

2-2-306. Articles of merger or consolidation.

Upon approval, articles of merger or articles of consolidation shall be executed by each association and filed in accordance with this subchapter, which shall be certified by the president and secretary of each association signing them and shall set forth:

  1. The plan of merger or the plan of consolidation, including the time when it shall become effective;
  2. As to each association:
    1. The number of shares or memberships outstanding or votes entitled to be cast; and
    2. If the shares or members of any class are entitled to vote as a class, the designation in number of outstanding shares or memberships or votes entitled to be cast by each class; and
  3. As to each association:
    1. The number of votes cast for and against the plan, respectively; and
    2. If any shares of any class of stock are entitled to vote as a class, the number of shares or votes of each class voted for and against the plan, respectively.

History. Acts 1981, No. 121, § 5; 1983, No. 163, § 5; A.S.A. 1947, § 77-1031.

2-2-307. Effect of merger or consolidation.

  1. The merger or consolidation shall become effective upon the filing in accordance with this subchapter of articles of merger or consolidation or at a time not more than sixty (60) days after the filing, as may be specified in the articles as the time when the merger or consolidation shall become effective.
  2. When the merger or consolidation has been effected:
    1. The several associations party to the plan of merger or consolidation shall be a single association which, in the case of a merger, shall be that association designated in the plan of merger as the surviving association or, in the case of a consolidation, shall be the new association provided for in the plan of consolidation;
    2. Subject to this subchapter, the separate existence of all associations party to the plan of merger or consolidation, except the surviving or new association, shall cease;
    3. The surviving or new association shall have all the rights, privileges, immunities, and powers and shall be subject to all the duties and liabilities of an association organized under this subchapter;
      1. The surviving or new association shall possess all the rights, privileges, immunities, and franchises of a public as well as of a private nature of each of the merging or consolidating associations.
        1. All property, real, personal, and mixed, and all debts due on whatever account, including subscriptions to shares, and all other choses in action, and all and every other interest of or belonging to, or due to each of the associations so merged or consolidated, shall be taken and deemed to be transferred to and vested in the single association without further act or deed.
        2. The title to any real estate or any interest therein vested in any of the associations shall not revert or be in any way impaired by reason of the merger or consolidation;
      1. The surviving or new association shall be responsible and liable for all the liabilities and obligations of each of the associations so merged or consolidated.
      2. Any claim existing or action or proceeding pending by or against any of the associations may be prosecuted as if the merger or consolidation had not taken place or the surviving or new association may be substituted in its place.
      3. Neither the rights of creditors nor any liens upon the property of any association shall be impaired by the merger or consolidation; and
      1. In the case of a merger, the articles of incorporation of the surviving association shall be deemed to be amended to the extent, if any, that changes in its articles of incorporation are stated in the plan of merger.
      2. In the case of a consolidation, the statements set forth in the articles of consolidation which are required or permitted to be set forth in the articles of incorporation of associations organized under this subchapter shall be deemed to be the original articles of incorporation of the new association.

History. Acts 1981, No. 121, § 6; A.S.A. 1947, § 77-1032.

2-2-308. Merger or consolidation of domestic and foreign associations.

  1. One (1) or more foreign associations and one (1) or more domestic associations may be merged or consolidated in the following manner if the merger or consolidation is permitted by the laws of the state or country under which each foreign association is organized:
    1. Each domestic association shall comply with the provisions of this subchapter with respect to the merger or consolidation, as the case may be, of domestic associations. Each foreign association shall comply with the applicable provisions of the laws of the state or country under which it is organized; and
    2. If the surviving or new association, as the case may be, is to be governed by laws of any country or state other than this state, it shall comply with the laws of Arkansas with respect to the admission of foreign associations if it is to transact business in this state. Moreover, it shall file with the Secretary of State of this state an irrevocable appointment of the Secretary of State as its agent to accept service of process in any proceeding.
    1. The effect of the merger or consolidation shall be the same as in the case of the merger or consolidation of domestic associations if the surviving or new association is to be governed by the laws of this state.
    2. If the surviving or new association is to be governed by the laws of any country or state other than this state, the effect of the merger or consolidation shall be the same as in the case of the merger or consolidation of domestic associations, except insofar as the laws of the other state provide otherwise.

History. Acts 1981, No. 121, § 7; A.S.A. 1947, § 77-1033.

2-2-309. Continuance of association existence for title transfers.

    1. The existence of each constituent association which has been dissolved through merger or consolidation shall be continued indefinitely without franchise tax liability for the limited purpose of enabling the constituent association to execute through its own officers formal deeds, conveyances, assignments, and other instruments evidencing the transfer from the constituent to the surviving association or new association created by consolidation of any or all properties, real and personal, which have passed from the constituent to the surviving or consolidated association by operation of law.
    2. The execution of any instruments shall not be essential to effect the transfer of title from the constituent to the surviving or consolidated association, inasmuch as the transfer will take effect through operation of law, but the power to execute the instruments is given to the end that it may be exercised:
      1. In respect to properties located in foreign jurisdictions which may not recognize a transmittal of title by operation of law under the merger and consolidation statutes of this state; and
      2. In any other situation where the directors of the surviving or consolidated association consider the execution of the instruments desirable.
    1. This state will recognize and give effect to a transfer of personal property having a situs in this state which is effected by operation of the laws of another state through a merger or consolidation at any time conducted under the laws of the other state.
      1. This state will recognize and give effect to a transfer of title to real estate located in this state effected by operation of law through a merger or consolidation conducted under laws of one (1) or more other states. This transfer shall be done on condition that a copy of the agreement of merger or consolidation, executed between the merging or consolidating associations and certified by the secretary of state of the state in which the surviving or consolidated association is domiciled, shall be filed for record with the Secretary of State of this state.
      2. The Secretary of State of this state shall receive the filing whether the surviving or consolidated association does or does not desire to be admitted to this state.

History. Acts 1981, No. 121, § 8; A.S.A. 1947, § 77-1034.

2-2-310. No approval for financial obligations — Exception.

  1. The board of directors shall not be required to procure any consent from or authorization by the members, except in the instance of the increase of bonded indebtedness of the association, in authorizing:
    1. The procurement of loans, the creation of obligations under which the association is to be primarily or secondarily liable, and the issuance of notes, bonds, and other obligations; and
    2. The mortgage and pledge of all or any part of the association's assets, including after-acquired property, as security for any obligations so incurred.
  2. Where the bonded indebtedness is increased within the meaning of Arkansas Constitution, Article 12, Section 8, authorization of both the creation of the additional indebtedness and the lien securing it shall be required in conformity with the constitutional provision.

History. Acts 1981, No. 121, § 9; A.S.A. 1947, § 77-1035.

2-2-311. Regular disposition of property.

The sale, lease, or exchange of all or substantially all of the property and assets of an association, when made in the usual and regular course of the business of the association, may be made upon such terms and conditions and for such considerations, which may consist in whole or in part of money or real or personal property, including shares of any other domestic or foreign association, as shall be authorized by its board of directors, and no authorization or consent of the members shall be required.

History. Acts 1981, No. 121, § 10; A.S.A. 1947, § 77-1036.

2-2-312. Disposition of property other than in regular course of business.

A sale, lease, or exchange of all or substantially all the property and assets, with or without the goodwill of an association, if not made in the usual and regular course of its business, may be made upon the terms and conditions and for consideration, which may consist in whole or in part of money or real or personal property, including shares of any other domestic or foreign association, as may be authorized in the following manner:

  1. The board of directors shall adopt a resolution recommending the sale, lease, or exchange and directing the submission thereof to a vote at a meeting of members, which may be either an annual or a special meeting;
  2. Written or printed notice shall be given to each member of record within the time and in the manner provided in this subchapter for the giving of notice of special meetings of members. Whether the meeting is an annual or a special meeting, the notice shall state that the purpose or one of the purposes of the meeting is to consider the proposed sale, lease, or exchange;
    1. At the meeting, the members may authorize the sale, lease, or exchange and may fix or may authorize the board to fix any or all of the terms and conditions thereof and the consideration to be received by the association.
    2. Each member of the association shall be entitled to vote thereon.
    3. The authorization shall require the affirmative vote of at least two-thirds (2/3) of the votes cast at the meeting in which members holding not less than fifty percent (50%) of the voting power of the association are represented in person or by proxy; and
  3. After the authorization by vote of members, the board, nevertheless, in its discretion may abandon the sale, lease, or exchange of assets, subject to the rights of third parties under any contracts relating thereto, without further action or approval by members.

History. Acts 1981, No. 121, § 11; 1983, No. 163, § 6; A.S.A. 1947, § 77-1037.

2-2-313. Rights of shareholders, members, and patrons.

  1. The merger or consolidation of an association under this subchapter shall constitute an assignment to the surviving or new association of all rights of any shareholder, member, or patron in the capital stock, patronage, or other interests in the association determined as of the effective date of the merger or consolidation.
  2. The shareholder, member, or patron in a merger, consolidation, sale, lease, or exchange of all or substantially all the property and assets of an association under this subchapter shall not be entitled to have the fair value of his or her capital stock, patronage, or other interests appraised as may otherwise be required by the general corporation laws of this state if:
    1. The surviving or new association in any merger or consolidation agrees to assume the obligations for the capital stock, patronage, or other interests of the merging or consolidating association, determined as of the effective date of the merger or consolidation, as may be provided under the bylaws or articles of association of the merging or consolidating association, or the association whose assets are sold or leased; or
    2. The acquiring association in any purchase or lease of all or substantially all of the property and assets of a transferring association pays consideration to the transferring association in cash or equity of the acquiring association, or both, the face value of which is equal to or greater than the face value of the issued and outstanding equity of the transferring association held by its shareholders, members, or patrons, determined as of the effective date of the sale or lease of assets.

History. Acts 1981, No. 121, § 12; A.S.A. 1947, § 77-1038; Acts 1991, No. 436, § 1.

Subchapter 4 — Marketing Associations

Effective Dates. Acts 1921, No. 116, § 30: Feb. 14, 1921. Emergency declared.

Acts 1937, No. 351, § 4: Mar. 25, 1937. Emergency declared.

Case Notes

Cited: Driver v. Producers Coop., 233 Ark. 334, 345 S.W.2d 16 (1961); Collie v. Little River Coop., 236 Ark. 725, 370 S.W.2d 62 (1963).

2-2-401. Title.

This subchapter shall be referred to as the “Cooperative Marketing Act”.

History. Acts 1921, No. 116, § 2; Pope's Dig., § 2287; A.S.A. 1947, § 77-902.

2-2-402. Purpose.

The purpose of this subchapter is to:

  1. Promote, foster, and encourage the intelligent and orderly marketing of agricultural products through cooperation and to eliminate speculation and waste;
  2. Make the distribution of agricultural products as direct as can be efficiently done between producer and consumer; and
  3. Stabilize the marketing problems of agricultural products.

History. Acts 1921, No. 116, § 1; Pope's Dig., § 2286; A.S.A. 1947, § 77-901.

2-2-403. Definitions.

  1. As used in this subchapter:
    1. “Agricultural products” means horticultural, viticultural, forestry, dairy, livestock, poultry, bee, and farm and ranch products;
    2. “Association” means any corporation organized under this subchapter;
    3. “Member” means actual members of associations without capital stock and holders of common stock in associations organized with capital stock; and
    4. “Person” means individuals, firms, partnerships, corporations, and associations.
  2. Associations organized under this subchapter shall be deemed nonprofit, inasmuch as they are not organized to make profits for themselves as such, or for their members as such, but only for their members as producers.

History. Acts 1921, No. 116, § 2; Pope's Dig., § 2287; A.S.A. 1947, § 77-902.

2-2-404. Who may organize.

Five (5) or more persons engaged in the production of agricultural products may form a nonprofit cooperative association, with or without capital stock, under the provisions of this subchapter.

History. Acts 1921, No. 116, § 3; Pope's Dig., § 2288; A.S.A. 1947, § 77-903.

2-2-405. Reasons for organizing.

An association may be organized to engage in any activity in connection with the marketing or selling of the agricultural products of its members or with the harvesting, preserving, drying, processing, canning, packing, ginning, compressing, storing, handling, shipping, or utilization thereof or the manufacturing or marketing of the by-products thereof; in connection with the manufacturing, selling, or supplying to its members of machinery, equipment, or supplies; in the financing of the enumerated activities; or in any one (1) or more of the activities specified in this subchapter.

History. Acts 1921, No. 116, § 4; Pope's Dig., § 2289; A.S.A. 1947, § 77-904.

2-2-406. Powers.

Each association incorporated under this subchapter shall have the following powers to:

    1. Engage in any activity in connection with the marketing, selling, harvesting, preserving, drying, processing, canning, packing, ginning, compressing, storing, handling, or utilization of any agricultural products produced or delivered to it by its members; the manufacturing or marketing of the by-products thereof; in connection with the purchase, hiring, or use by members of supplies, machinery, or equipment; in the financing of any such activities; or in any one (1) or more of the activities specified in this section.
    2. No association, however, shall handle the products of nonmembers to an extent greater than that handled for members;
  1. Borrow money and to make advances to members;
  2. Act as the agent or representative of any member in any of the mentioned activities;
  3. Purchase or otherwise acquire and to hold, own, and exercise all rights of ownership in, and to sell, transfer, or pledge shares of the capital stock or bonds of any corporation or association engaged in any related activity or in the handling or marketing of any of the products handled by the association;
  4. Establish reserves and to invest the funds thereof in bonds or such other property as may be provided in the bylaws;
  5. Buy, hold, and exercise all privileges of ownership over such real or personal property as may be necessary or convenient for the conducting and operation of any of the business of the association or incidental thereto; and
    1. Do each and every thing necessary, suitable, or proper for the accomplishment of any one (1) of the purposes or the attainment of any one (1) or more of the objects enumerated in this section or conducive to or expedient for the interest or benefit of the association, and to contract accordingly.
    2. In addition, to exercise and possess all powers, rights, and privileges necessary or incidental to the purposes for which the association is organized or to the activities in which it is engaged.
    3. In addition, to have any other rights, powers, and privileges granted by the laws of this state to ordinary corporations, except as are inconsistent with the express provisions of this subchapter, and to do any such thing anywhere.

History. Acts 1921, No. 116, § 6; 1937, No. 351, § 1; Pope's Dig., § 2291; A.S.A. 1947, § 77-906.

Case Notes

Future Delivery.

This section empowers cooperative marketing associations to make contracts for the sale and future delivery of agricultural products. Ark. Cotton Growers Coop. Ass'n v. Brown, 168 Ark. 504, 270 S.W. 946 (1925), supp. op., 168 Ark. 523, 270 S.W. 1119 (1925).

Limits on Authority.

Association had no right to sell rough rice without pooling it or to sell rice on commission. McCauley v. Ark. Rice Growers Coop. Ass'n, 171 Ark. 1155, 287 S.W. 419 (1926).

Management of Funds.

Directors of cooperative marketing association organized under this chapter abused their discretion in failing to develop and maintain a rational balance between amounts paid preferred stockholders and active members and in failing to provide, maintain, and build the allocated reserve required by the articles of incorporation where action of board in effect denied owners of preferred stock assurance that their stock would be redeemed as provided in articles of incorporation while affording active members a profitable return. Collie v. Little River Coop., 236 Ark. 725, 370 S.W.2d 62 (1963).

2-2-407. Members.

  1. Under the terms and conditions prescribed in its bylaws, an association may admit as members, or issue common stock only to, persons engaged in the production of the agricultural products to be handled by or through the association, including the lessees and tenants of land used for the production of agricultural products and any lessors and landlords who receive as rent part of the crop raised on the leased premises.
  2. If a member of a nonstock association is other than a natural person, the member may be represented by any individual, associate, officer, or member thereof, duly authorized in writing.
  3. An association organized under this subchapter may become a member or stockholder of any other association organized under this subchapter.

History. Acts 1921, No. 116, § 7; Pope's Dig., § 2292; A.S.A. 1947, § 77-907.

2-2-408. Articles of incorporation.

  1. Each association formed under this subchapter must prepare and file articles of incorporation setting forth:
    1. The name of the association;
    2. The purposes for which it is formed;
    3. The place where its principal business will be transacted;
    4. The term for which it is to exist, not exceeding fifty (50) years;
      1. The number of directors, which must be not fewer than five (5) and may be any number in excess thereof; and
      2. The term of office of the directors;
        1. If organized without capital stock, whether the property rights and interest of each member shall be equal or unequal.
        2. If unequal, the articles shall set forth the general rules applicable to all members by which the property rights and interests, respectively, of each member may and shall be determined and fixed.
      1. The association shall have the power to admit new members who shall be entitled to share in the property of the association with the old members, in accordance with the general rules.
      2. This provision of the articles of incorporation shall not be altered, amended, or repealed except by the written consent of the vote of three-fourths (¾) of the members; and
      1. If organized with capital stock, the amount of the stock and the number of shares into which it is divided and the par value thereof.
        1. The capital stock may be divided into preferred and common stock.
        2. If so divided, the articles of incorporation must contain a statement of the number of shares of stock to which preference is granted, the number of shares of stock to which no preference is granted, and the nature and extent of the preference and privileges granted to each.
    1. The articles must be subscribed by the incorporators and acknowledged by one (1) of them before an officer authorized by the law of this state to take and certify acknowledgment of deeds and conveyances.
      1. They shall be filed in accordance with the provisions of the general corporation law of this state.
      2. When so filed, the articles of incorporation or certified copies shall be received in all the courts of this state and other places as prima facie evidence of the facts contained therein and of the due incorporation of the association.
    2. A certified copy of the articles of incorporation shall also be filed with the Dean of the College of Agriculture of the University of Arkansas at Fayetteville and the Secretary of State.

History. Acts 1921, No. 116, § 8; Pope's Dig., § 2293; A.S.A. 1947, § 77-908.

Cross References. Business Corporation Act of 1987, § 4-27-101 et seq.

2-2-409. Amendments to articles.

  1. The articles of incorporation may be altered or amended at any regular meeting or at any special meeting called for that purpose.
  2. Amendments to the articles of incorporation when so adopted shall be certified to by the president and secretary of the association and shall be filed with the Secretary of State.

History. Acts 1921, No. 116, § 9; Pope's Dig., § 2294; Acts 1961, No. 470, § 1; A.S.A. 1947, § 77-909.

2-2-410. Filing fees.

For filing articles of incorporation, an association organized under this subchapter shall pay five dollars ($5.00), and for filing an amendment to the articles, it shall pay two dollars and fifty cents ($2.50).

History. Acts 1921, No. 116, § 29; 1937, No. 351, § 3; Pope's Dig., § 2314; A.S.A. 1947, § 77-928.

2-2-411. Bylaws.

  1. Within thirty (30) days after its incorporation, each association incorporated under this subchapter must adopt a code of bylaws, not inconsistent with the powers granted by this subchapter, for its government and management.
  2. Each association under its bylaws may also provide for any or all of the following matters:
    1. The time, place, and manner of calling and conducting its meetings;
    2. The number of stockholders or members constituting a quorum;
    3. The right of members or stockholders to vote by proxy or by mail or by both, and the conditions, manner, form, and effect of these votes;
    4. The number of directors constituting a quorum;
    5. The qualifications, compensation, duties, and term of office of directors and officers; time of their election; and the mode and manner of giving notice thereof;
    6. Penalties for violations of the bylaws;
    7. The amount of entrance, organization, and membership fees, if any; the manner and method of collection of the fees; and the purposes for which they may be used;
      1. The amount which each member or stockholder shall be required to pay annually or from time to time, if at all, to carry on the business of the association;
      2. The charge, if any, to be paid by each member or stockholder for services rendered by the association to him or her and the time of payment and the manner of collection; and
      3. The marketing contract between the association and its members or stockholders, which every member or stockholder may be required to sign; and
      1. The number and qualification of members or stockholders of the association and the conditions precedent to membership or ownership of common stock;
      2. The method, time, and manner of permitting members to withdraw or the holders of common stock to transfer their stock;
      3. The manner of assignment and transfer of the interest of members and the shares of common stock;
      4. The conditions upon which the membership of any member shall cease;
      5. The automatic suspension of the rights of a member when he or she ceases to be eligible for membership in the association and the mode, manner, and effect of the expulsion of a member; and
        1. The manner of determining the value of a member's interest and provision for its purchase by the association upon the death or withdrawal of a member or stockholder or upon the expulsion of a member or forfeiture of his or her membership or, at the option of the association, by a conclusive appraisal by the board of directors.
        2. In case of withdrawal or expulsion of a member, the board of directors shall equitably and conclusively appraise his or her property interests in the association and shall fix the amount thereof in money, which shall be paid to him or her within one (1) year after the expulsion or withdrawal.

History. Acts 1921, No. 116, § 10; Pope's Dig., § 2295; Acts 1961, No. 470, § 2; A.S.A. 1947, § 77-910.

2-2-412. [Repealed.]

Publisher's Notes. This section, concerning amendment of articles or bylaws, was repealed by Acts 1987, No. 507, § 1. The section was derived from Acts 1961, No. 470, § 3; A.S.A. 1947, § 77-910.1.

2-2-413. Regular and special meetings.

  1. In its bylaws, each association shall provide for one (1) or more regular meetings annually.
    1. The board of directors shall have the right to call a special meeting at any time, and ten percent (10%) of the members or stockholders may file a petition stating the specific business to be brought before the association and demand a special meeting at any time.
    2. This meeting must be called by the directors.
    1. Notice of all meetings together with a statement of the purposes thereof shall be mailed to each member at least ten (10) days before the meeting.
    2. The bylaws may require instead that the notice may be given by publication in a newspaper of general circulation published at the principal place of business of the association.

History. Acts 1921, No. 116, § 11; Pope's Dig., § 2296; A.S.A. 1947, § 77-911.

2-2-414. Board of directors.

    1. The affairs of the association shall be managed by a board of not less than five (5) directors elected by the members or stockholders from their own number.
        1. The bylaws may provide that the territory in which the association has members shall be divided into districts and that the directors shall be elected according to the districts.
        2. In this case, the bylaws shall specify the number of directors to be elected by each district and the manner and method of reapportioning the directors and of redistricting the territory covered by the association.
      1. The bylaws may provide that primary elections should be held in each district to elect the directors apportioned to the districts, and the result of all the primary elections must be ratified by the next regular meeting of the association.
    1. The bylaws may provide that one (1) or more directors may be appointed by the Dean of the College of Agriculture of the University of Arkansas at Fayetteville or by the Secretary of State or any other public official or commission.
    2. The directors so appointed need not be members or stockholders of the association but shall have the same powers and rights as other directors.
    1. An association may provide a fair remuneration for the time actually spent by its officers and directors in its service.
    2. No director during the term of his or her office shall be a party to a contract for profit with the association differing in any way from the business relations accorded regular members or holders of common stock of the association or to any other kind of contract differing from terms generally current in that district.
    1. When a vacancy on the board of directors occurs other than by expiration of term, the remaining members of the board, by a majority vote, shall fill the vacancy unless the bylaws provide for an election of directors by district.
    2. In that case, the board shall immediately call a special meeting of the members or stockholders in that district to fill the vacancy.

History. Acts 1921, No. 116, § 12; Pope's Dig., § 2297; A.S.A. 1947, § 77-912.

2-2-415. Officers.

  1. The board of directors shall elect from their number a president and one (1) or more vice presidents.
    1. They shall also elect a secretary and treasurer, who need not be directors, and they may combine the two (2) latter offices and designate the combined office as secretary-treasurer.
      1. The treasurer may be a bank or any depository, and as such shall not be considered as an officer but as a functionary of the board of directors.
      2. In such case, the secretary shall perform the usual accounting duties of the treasurer, excepting that the funds shall be deposited only as authorized by the board.

History. Acts 1921, No. 116, § 13; Pope's Dig., § 2298; A.S.A. 1947, § 77-913.

2-2-416. Removal of officer or director.

    1. Any member may bring charges against an officer or director by filing the charges in writing with the secretary of the association, together with a petition signed by ten percent (10%) of the members, requesting the removal of the officer or director in question.
    2. The removal shall be voted upon at the next regular or special meeting of the association, and by a vote of a majority of the members the association may remove the officer or director and fill the vacancy.
      1. The director or officer against whom the charges have been brought shall be informed in writing of the charges previous to the meeting and shall have an opportunity at the meeting to be heard in person or by counsel and to present witnesses; and
      2. The person or persons bringing the charges against him or her shall have the same opportunity.
    1. In case the bylaws provide for election of directors by districts with primary elections in each district, then the petition for removal of a director must be signed by twenty percent (20%) of the members residing in the district from which he or she was elected.
    2. The board of directors must call a special meeting of the members residing in that district to consider the removal of the director.
    3. By a vote of the majority of the members of that district, the director in question shall be removed from office.

History. Acts 1921, No. 116, § 15; Pope's Dig., § 2300; A.S.A. 1947, § 77-915.

2-2-417. Certificates of membership or stock ownership.

  1. When a member of an association established without capital stock has paid his or her membership fee in full, he or she shall receive a certificate of membership.
      1. No association shall issue stock to a member until the stock has been fully paid for.
      2. The promissory notes of the members may be accepted by the association as full or partial payment.
    1. The association shall hold the stock as security for the payment of the note, but such retention as security shall not affect the member's right to vote.
  2. Except for debts lawfully contracted between him or her and the association, no member shall be liable for the debts of the association to an amount exceeding the sum remaining unpaid on his or her membership fee or his or her subscription to the capital stock, including any unpaid balances on any promissory notes given in payment thereof.
    1. No stockholder of a cooperative association shall own more than one-twentieth (1/20) of the common stock of the association.
    2. An association in its bylaws may limit the amount of common stock which one (1) member may own to any amount less than one-twentieth (1/20) of the common stock.
  3. No member or stockholder shall be entitled to more than one (1) vote.
    1. Any association organized with stock under this subchapter may issue preferred stock, with or without the right to vote.
    2. The stock may be redeemable or retirable by the association on such terms and conditions as may be provided for by the articles of incorporation and printed on the face of each certificate.
  4. The bylaws shall prohibit the transfer of the common stock of the association to persons not engaged in the production of the agricultural products handled by the association, and the restriction must be printed upon every certificate of stock subject thereto.
  5. At any time except when the debts of the association exceed fifty percent (50%) of its assets, the association may buy in or purchase its common stock at book value as conclusively determined by the board of directors and pay for it in cash within one (1) year thereafter.

History. Acts 1921, No. 116, § 14; Pope's Dig., § 2299; A.S.A. 1947, § 77-914.

2-2-418. Matters referred to entire membership.

Upon demand of one-third (1/3) of the entire board of directors, any matter that has been approved or passed by the board must be referred to the entire membership or the stockholders for decision at the next special or regular meeting. A special meeting may be called for that purpose.

History. Acts 1921, No. 116, § 16; Pope's Dig., § 2301; A.S.A. 1947, § 77-916.

2-2-419. Marketing contracts — Remedies.

    1. The association and its members may make and execute marketing contracts requiring the members to sell, for any period of time not over ten (10) years, all or any specified part of their agricultural products or specified commodities exclusively to or through the association or any facilities to be created by the association.
    2. The contract may provide that the association may sell or resell the products of its members with or without taking title thereto and pay over to its members the resale price after deducting all necessary selling, overhead, and other costs and expenses, including:
      1. Interest on preferred stock, not exceeding eight percent (8%) per annum;
      2. Reserves for retiring the stocks, if any;
      3. Other proper reserves; and
      4. Interest not exceeding eight percent (8%) per annum upon common stock.
  1. The bylaws and the marketing contract may fix, as liquidated damages, specific sums to be paid by the member or stockholder to the association upon the breach by him or her of any provision of the marketing contract regarding the sale or delivery or withholding of products. They may further provide that the member will pay all costs, premiums for bonds, expenses, and fees in case any action is brought upon the contract by the association. Any such provision shall be valid and enforceable in the courts of this state.
    1. In the event of any breach or threatened breach of the marketing contract by a member, the association shall be entitled to an injunction to prevent the further breach of the contract and to a decree of specific performance thereof.
    2. Pending the adjudication of an action and upon filing a verified complaint showing the breach or threatened breach and upon filing a sufficient bond, the association shall be entitled to a temporary restraining order and preliminary injunction against the member.

History. Acts 1921, No. 116, § 17; Pope's Dig., § 2302; A.S.A. 1947, § 77-917.

Case Notes

Constitutionality.

This section is not invalid as an attempt to enlarge the jurisdiction of the chancery court. Ark. Cotton Growers Coop. Ass'n v. Brown, 168 Ark. 504, 270 S.W. 946 (1925), supp. op., 168 Ark. 523, 270 S.W. 1119 (1925).

Breach of Contract.

The fact that officers of association breached the contract in certain respects did not absolve members from carrying out their contracts. McCauley v. Ark. Rice Growers Coop. Ass'n, 171 Ark. 1155, 287 S.W. 419 (1926).

Cited: Hardy Constr. Co. v. Ark. State Hwy. & Transp. Dep't, 324 Ark. 496, 922 S.W.2d 705 (1996).

2-2-420. Penalties for inducing breach of contract.

Any person or corporation whose officers or employees knowingly induce or attempt to induce any member or stockholder of an association organized under this subchapter to breach his or her marketing contract with the association or who maliciously and knowingly spread false reports about the finances or management of the association shall be guilty of a violation and subject to a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for the offense and shall be liable to the association aggrieved in a civil suit in the penal sum of five hundred dollars ($500) for each offense.

History. Acts 1921, No. 116, § 24; Pope's Dig., § 2309; A.S.A. 1947, § 77-924; Acts 2005, No. 1994, § 4.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor”.

Case Notes

Elements of Offense.

To render one purchasing rice from a member of a cooperative marketing association liable for a penalty prescribed in this section, it must appear the defendant knowingly induced the member to sell rice which he or she had no right to sell under the marketing contract. Loewer v. Ark. Rice Growers' Coop. Ass'n, 180 Ark. 484, 22 S.W.2d 17 (1929).

2-2-421. Exchange of shares for acquired interests.

Whenever an association organized under this subchapter with preferred capital stock shall purchase the stock or any property or any interest in any property of any person, firm, corporation, or association, it may discharge the obligations so incurred, wholly or in part, by exchanging for the acquired interest shares of its preferred capital stock to an amount which at par value would equal a fair market value of the stock or interest so purchased, as determined by the board of directors. In that case, the transfer to the association of the stock or interest purchased shall be equivalent to payment in cash for the shares of stock issued.

History. Acts 1921, No. 116, § 18; Pope's Dig., § 2303; A.S.A. 1947, § 77-918.

2-2-422. Annual report.

Each association formed under this subchapter shall prepare and make out an annual report on forms furnished by the Secretary of State and the College of Agriculture of the University of Arkansas at Fayetteville, containing:

  1. The name of the association;
  2. Its principal place of business; and
  3. A general statement of its business operations during the fiscal year, showing:
      1. The amount of capital stock paid up and the number of stockholders of a stock association; or
      2. The number of members and amount of membership fees received if a nonstock association;
    1. The total expenses of operations;
    2. The amount of its indebtedness or liability; and
    3. Its balance sheets.

History. Acts 1921, No. 116, § 19; Pope's Dig., § 2304; A.S.A. 1947, § 77-919.

2-2-423. Interest in other corporations.

  1. An association may organize, form, operate, own, control, have an interest in, own stock of, or be a member of any other corporation, with or without capital stock; and engage in preserving, drying, processing, canning, packing, ginning, compressing, storing, handling, shipping, utilizing, manufacturing, marketing, or selling of agricultural products handled by the association, or the by-products thereof.
    1. If the corporations are warehousing corporations, they may issue legal warehouse receipts to the association or to any other person and the legal warehouse receipts shall be considered as adequate collateral to the extent of the current value of the commodity represented.
    2. In case the warehouse is licensed or licensed and bonded under the laws of this state or the United States, its warehouse receipt shall not be challenged or discriminated against because of ownership or control, wholly or in part, by the association.

History. Acts 1921, No. 116, § 21; Pope's Dig., § 2306; A.S.A. 1947, § 77-921.

2-2-424. Agreements with other associations.

  1. Upon resolution adopted by its board of directors, any association may enter into all necessary and proper contracts and agreements and make all necessary and proper stipulations, agreements, contracts, and arrangements with any other cooperative corporation or association formed in this or any other state for the cooperative and more economical carrying on of its business or any part thereof.
  2. By agreement between them, any two (2) or more associations may unite in employing and using or may separately employ and use the same methods, means, and agencies for carrying on and conducting their respective businesses.

History. Acts 1921, No. 116, § 22; Pope's Dig., § 2307; A.S.A. 1947, § 77-922.

2-2-425. Existing entities may participate.

    1. By a majority vote of its stockholders or members, any corporation or association organized under previous existing statutes may be brought under the provisions of this subchapter by limiting its membership and adopting the other restrictions as provided in this subchapter.
    2. It shall make out in duplicate a statement signed and sworn to by its directors upon forms supplied by the Secretary of State to the effect that the corporation or association has by a majority vote of its stockholders or members decided to accept the benefits and be bound by the provisions of this subchapter.
    3. Articles of incorporation shall be filed as required in § 2-2-408, except that they shall be signed by the members of the board of directors.
  1. The filing fee shall be the same as for filing an amendment to articles of incorporation.

History. Acts 1921, No. 116, § 23; Pope's Dig., § 2308; A.S.A. 1947, § 77-923.

2-2-426. Arrangements not in restraint of trade.

No association organized under this subchapter shall be deemed to be a combination in restraint of trade or an illegal monopoly or an attempt to lessen competition or fix prices arbitrarily. The marketing contracts or agreements between the association and its members or any agreements authorized in this subchapter are not illegal or in restraint of trade.

History. Acts 1921, No. 116, § 25; Pope's Dig., § 2310; A.S.A. 1947, § 77-925.

2-2-427. Tax exemption.

Each association organized under this subchapter shall be exempt from all franchise or license taxes.

History. Acts 1921, No. 116, § 28; 1937, No. 351, § 2; Pope's Dig., § 2313; A.S.A. 1947, § 77-927.

2-2-428. General corporation laws.

The provisions of the general corporation laws of this state and all powers and rights thereunder shall apply to the associations organized under this subchapter, except where the provisions are in conflict with or inconsistent with the express provisions of this subchapter.

History. Acts 1921, No. 116, § 27; Pope's Dig., § 2312; A.S.A. 1947, § 77-926.

Cross References. Business Corporation Act of 1987, § 4-27-101 et seq.

Case Notes

Venue.

Corporation laws apply to agricultural cooperative associations, and thus venue is proper in either the county in which the association's principal place of business is located or in the county in which one of its branch offices is located. Two Bros. Farm v. Riceland Foods, Inc., 57 Ark. App. 25, 940 S.W.2d 889 (1997).

2-2-429. Conflicting laws.

Any provisions of law which are in conflict with this subchapter shall not be construed as applying to the associations provided for in this subchapter.

History. Acts 1921, No. 116, § 20; Pope's Dig., § 2305; A.S.A. 1947, § 77-920.

2-2-430. Conversion to nonprofit corporate status.

  1. An association formed under this subchapter may elect to be governed by the provisions of the Arkansas Nonprofit Corporation Act of 1993, § 4-33-101 et seq., by amending and restating its articles of incorporation to provide that it shall be so governed.
  2. The election shall be approved upon receiving the affirmative vote of at least two-thirds (2/3) of the votes cast at any regular meeting, or at any special meeting called for that purpose, in which members holding not less than fifty percent (50%) of the voting power of the association are represented in person or by proxy, but the election once made shall be irrevocable.
  3. The amended and restated articles of incorporation shall comply with and shall be filed under the provisions of the Arkansas Nonprofit Corporation Act of 1993, § 4-33-101 et seq., and thereafter the association shall be governed by the Arkansas Nonprofit Corporation Act of 1993, § 4-33-101 et seq.

History. Acts 1997, No. 521, § 1.

Chapter 3 Arkansas Agricultural Foreign Investment

Effective Dates. Acts 1979, No. 1096, § 14: Apr. 19, 1979. Emergency clause provided: “It has been found and is hereby declared that a record should be kept of the acquisition by foreign parties of Arkansas agricultural land since such acquisition may constitute an undesirable foreign influence upon the people of this state and the welfare of its people and may contribute to the deterioration of the family farm system and the rural community and may result in abuse to Arkansas farm land through improper conservation measures. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

U. Ark. Little Rock L.J.

DeSimone, Survey of Property Law, 3 U. Ark. Little Rock L.J. 286.

2-3-101. Title.

This chapter may be cited as the “Arkansas Agricultural Foreign Investment Act”.

History. Acts 1979, No. 1096, § 1; A.S.A. 1947, § 77-2201.

2-3-102. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Agricultural land” means any Arkansas land which is outside the corporate limits of a municipality and is used or capable, without substantial modification to the character of the land, of use for agricultural, forestry, or timber production, but does not include oil, gas, and all other minerals, including coal, lignite, brine, and all minerals known and recognized as commercial minerals underlying the land;
  2. “Foreign government” means any government other than the federal government or any government of a state or a political subdivision of a state;
  3. “Foreign party” means:
    1. Any individual who is not a citizen of the United States and who is not a resident of some state, territory, or possession of the United States;
    2. Any foreign government;
    3. Any party, other than an individual or a government, which is created or organized under the laws of a foreign government or which has its principal place of business located outside the United States;
    4. Any party other than an individual or a government:
      1. Which is created or organized under the laws of any state; and
      2. In which a significant interest is directly or indirectly held or in which not insubstantial control is directly or indirectly held or is capable of being exercised by:
        1. Any individual referred to in subdivision (3)(A) of this section;
        2. Any foreign government;
        3. Any party referred to in subdivision (3)(C) of this section;
        4. Any combination of such individuals, parties, or government; and
    5. Any agent, trustee, or other fiduciary of a person or entity enumerated in this subdivision (3); and
  4. “Party” means any individual, corporation, company, association, firm, partnership, society, joint-stock company, trust, estate, or any other legal entity.

History. Acts 1979, No. 1096, § 2; A.S.A. 1947, § 77-2202.

2-3-103. Registration of foreign interest in agricultural land.

      1. When after April 19, 1979, any foreign party acquires any interest in agricultural land in Arkansas by grant, purchase, adverse possession, devise, descent, or in any other manner or any agent, trustee, or fiduciary acquires title to agricultural land in Arkansas on behalf of a foreign party, the foreign party or agent, trustee, or fiduciary shall register the ownership in the office of the circuit clerk in the county in which the land is located within sixty (60) days after the acquisition.
      2. The registration shall include a description of the agricultural lands acquired and the name and business address of the foreign party which acquired the lands or in whose behalf the lands were acquired.
    1. When the acquisition of lands by a foreign party is registered with the circuit clerk as required in this section, the clerk shall record the acquisition in an appropriate foreign land ownership record book to be maintained by him or her. The clerk shall forthwith remit a copy of the registration to the Secretary of State, who shall likewise maintain a record of all registrations made under the provisions of this chapter.
  1. Any foreign party who obtains a lease of agricultural land for a term of ten (10) years or longer or a lease renewable by option for terms which, if the options were all exercised, would total ten (10) years shall be deemed to have acquired agricultural land within the meaning of this chapter.
  2. Any party who acquires or holds any interest in agricultural land in violation of this chapter shall continue to violate this chapter for as long as he or she holds an interest in the land.
  3. Nothing in this chapter shall prevent a foreign party holding a lien or other interest in agricultural land before April 19, 1979, from taking a valid title to the land by the enforcement of the lien or other existing interest, but any such interest shall be registered as required in this chapter.

History. Acts 1979, No. 1096, § 3; A.S.A. 1947, § 77-2203.

2-3-104. Right to security interests.

Any foreign party shall have the right to make loans of money and to take and accept mortgages or other security interests upon agricultural land in Arkansas to secure the payment of loans. The foreign party may acquire fee ownership of the land upon a foreclosure or other legal enforcement of the security interest, provided the foreign party acquiring ownership registers the ownership as required in this chapter.

History. Acts 1979, No. 1096, § 4; A.S.A. 1947, § 77-2204.

2-3-105. Land acquired by lien.

  1. Any foreign party who acquires agricultural land by enforcement of a lien resulting from a transaction occurring after April 19, 1979, shall, within sixty (60) days of the acquisition, register the ownership as required in this chapter.
  2. In the event of failure to register as required in this chapter, proceedings under § 2-3-106 or § 2-3-107 shall be commenced.

History. Acts 1979, No. 1096, § 11; A.S.A. 1947, § 77-2211.

2-3-106. Proceedings upon failure to register.

  1. Any recorder of deeds, tax assessor, or other public official who shall learn that a foreign party has acquired agricultural land in Arkansas after April 19, 1979, and has not registered as required in this chapter or otherwise holds agricultural land in violation of this chapter shall report the violation to the Attorney General.
    1. Upon receiving notice under subsection (a) of this section, or otherwise in his or her discretion, the Attorney General shall institute an action in the Pulaski County Circuit Court or in the circuit court of any county in which any portion of the agricultural land acquired or held in violation of § 2-3-103 is located.
    2. The Attorney General shall file a notice of the pendency of the action with the recorder of deeds of each county in which any portion of the agricultural land is located.
    1. If the court finds that the agricultural land has been acquired or is held in violation of this chapter, the court shall enter a declaratory judgment of the violation and order that the agricultural land be divested to a party other than another foreign party within two (2) years of the date of the order.
      1. The court may also assess against the foreign party a civil penalty for a knowing violation of this chapter of up to twenty-five percent (25%) of the then fair market value of the agricultural land.
      2. The penalty assessed shall become a lien against the agricultural land.
    1. Upon the entry of a declaratory judgment of a violation and an order of divestiture, the Attorney General shall cause a copy of the order to be filed with the recorder of deeds of each county in which any portion of the agricultural land is located.
      1. The order of divestiture shall be a covenant running with the agricultural land against any foreign party, grantee, or assignee.
      2. Any foreign party who shall acquire any portion of the agricultural land within the two-year divestiture period specified in the order shall be required to divest within the two-year period.
  2. Any agricultural land which is not divested within the time prescribed by an order under subsection (c) of this section shall be ordered sold at public sale in the manner prescribed by law for the foreclosure of a mortgage on real estate for default in payment.

History. Acts 1979, No. 1096, § 5; A.S.A. 1947, § 77-2205; Acts 2005, No. 1962, § 2.

Publisher's Notes. Pursuant to § 14-14-1301, the clerk of the circuit court is ex officio recorder.

Amendments. The 2005 amendment, in (b)(1) inserted “or her”, substituted “Pulaski County Circuit Court” for “Circuit Court or Chancery Court of Pulaski County”, and deleted “or chancery” following “circuit”.

2-3-107. Private right of enforcement.

If the Attorney General refuses to bring an action provided for or authorized by this chapter, any person claiming a violation therefor, upon notice to the Attorney General, may apply to the court for leave to bring the action in his or her own name and may bring the action if leave therefor is granted.

History. Acts 1979, No. 1096, § 6; A.S.A. 1947, § 77-2206.

2-3-108. Exceptions generally.

  1. This chapter shall not apply to agricultural land owned by a foreign party on April 19, 1979, while the land is held by the foreign party, nor shall this chapter apply to any alien while a bona fide resident of the United States or one of its territories or possessions.
  2. Should any alien owning agricultural land in Arkansas cease to be a bona fide resident of the United States or one of its territories or possessions, the alien shall register as required in this chapter within two (2) years after ceasing to be a bona fide resident.
  3. Agricultural land held by a nonresident alien over two (2) years after ceasing to be a resident alien shall be subject to the proceedings set forth in §§ 2-3-106 and 2-3-107.

History. Acts 1979, No. 1096, § 7; A.S.A. 1947, § 77-2207.

2-3-109. Rights in nonfarm lands.

Except as provided in this chapter, all aliens, whether or not residents of the United States, shall be capable of acquiring by grant, purchase, adverse possession, devise, or descent any interest in any real estate except agricultural land, as defined in § 2-3-102, and of owning, holding, devising, or alienating it and shall incur the like duties and liabilities in relation thereto as if they were citizens of the United States and residents of Arkansas.

History. Acts 1979, No. 1096, § 9; A.S.A. 1947, § 77-2209.

2-3-110. Agricultural land used for nonfarming purposes and mineral leases.

  1. The restrictions set forth in this chapter do not apply to agricultural land acquired by a foreign party for immediate or potential use for nonfarming purposes.
  2. A foreign party who acquires agricultural land for nonfarming purposes shall not be required to make a filing or report under this chapter.
    1. A foreign party who acquires agricultural land under subsection (a) of this section and later uses the agricultural land for farming purposes shall register as required in this chapter within sixty (60) days of the change in use.
    2. Failure to register ownership for the use of agricultural land for farming purposes under subdivision (c)(1) of this section shall be subject to actions as provided in §§ 2-3-106 and 2-3-107.
  3. The restrictions set forth in this chapter do not apply and no reporting requirement attaches to leases or other conveyances granting the right to explore for and produce the oil, gas, and all other minerals, including coal, lignite, brine, and all minerals known and recognized as commercial minerals underlying the land, and oil, gas, coal, lignite, brine, and other mineral or royalty interests regardless of type or duration, easements, or tracts of land reasonably necessary for the extraction of oil, gas, and all other minerals, including coal, lignite, brine, and all minerals known and recognized as commercial minerals underlying the land.

History. Acts 1979, No. 1096, § 10; A.S.A. 1947, § 77-2210; Acts 2009, No. 643, §§ 1, 2.

A.C.R.C. Notes. Acts 2009, No. 643, § 2, provided: “This act applies retroactively to April 19, 1979.”

Amendments. The 2009 amendment, in (b), deleted (b)(2), which read: “The filings shall be made within sixty (60) days of the date of transfer of title to the land”, redesignated the remaining text, and substituted “not be required to make a filing or report under this chapter” for “file with the Secretary of State a declaration of intent as to the intended use of the land, the foreign party's identity, and a legal description of the land acquired”; rewrote (c); and made minor stylistic changes.

Chapter 4 Agricultural Operations As Nuisances

Effective Dates. Acts 1981, No. 301, § 10: Mar. 3, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that under certain circumstances, an agricultural facility or the operation thereof may be declared a nuisance as a result of change in conditions in the area around the facility occurring after the facility has been in operation for a long period of time; that to permit any such facility which was not a nuisance when established to be declared a nuisance and forced to cease operations because of change in conditions in the locality and after the facility has been in operation for a long period of time is not only unfair to the owners, operators and employees of such plant but is highly detrimental to the economic growth and development of the state; that this act is designed to correct this situation and at the same time to protect the public health and preserve individual rights. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

Ark. L. Notes.

Malone, Farmland Preservation, 1985 Ark. L. Notes 73.

Ark. L. Rev.

Noble and Looney, The Emerging Legal Framework for Animal Agricultural Waste Management in Arkansas, 47 Ark. L. Rev. 159.

U. Ark. Little Rock L.J.

Legislative Survey, Property, 4 U. Ark. Little Rock L.J. 607.

2-4-101. Purpose.

It is the declared policy of the state to conserve, protect, and encourage the development and improvement of its agricultural and forest lands and other facilities for the production of food, fiber, and other agricultural and silvicultural products. When nonagricultural land uses extend into agricultural areas, agricultural operations often become the subject of nuisance suits. As a result, agricultural operations are sometimes forced to cease operations. Many are discouraged from making investments in farm or other agricultural improvements. It is the purpose of this chapter to reduce the loss to the state of its agricultural resources by limiting the circumstances under which agricultural operations may be deemed to be a nuisance.

History. Acts 1981, No. 301, § 1; A.S.A. 1947, § 34-120; Acts 2005, No. 2257, § 1.

Amendments. The 2005 amendment substituted “and forest lands” for “land” and “fiber, and other agricultural and silvicultural” for “and other agricultural” in the first sentence.

Research References

U. Ark. Little Rock L. Rev.

Kristin Titley, Note: Environmental Law—Regulation of Concentrated Animal Feeding Operations—Reducing the Nuisance: How Arkansas Can Use Its Right-to-Farm Statute to Protect Against the Destruction of CAFOs, 37 U. Ark. Little Rock L. Rev. 495 (2015).

2-4-102. Definitions.

As used in this chapter:

  1. “Agricultural operation” or “farming operation” means an agricultural, silvicultural, or aquacultural facility or pursuit conducted, in whole or in part, including:
    1. The care and production of livestock and livestock products, poultry and poultry products, apiary products, and plant and animal production for nonfood uses;
    2. The planting, cultivating, harvesting, and processing of crops and timber; and
    3. The production of any plant or animal species in a controlled freshwater or saltwater environment; and
  2. “Agriculture” includes agriculture, silviculture, and aquaculture.

History. Acts 1981, No. 301, § 2; A.S.A. 1947, § 34-121; Acts 2005, No. 2257, § 2.

Publisher's Notes. As passed, Acts 2005, No. 2257, contained two sections designated as subdivision 2.

Amendments. The 2005 amendment rewrote this section.

Research References

U. Ark. Little Rock L. Rev.

Kristin Titley, Note: Environmental Law—Regulation of Concentrated Animal Feeding Operations—Reducing the Nuisance: How Arkansas Can Use Its Right-to-Farm Statute to Protect Against the Destruction of CAFOs, 37 U. Ark. Little Rock L. Rev. 495 (2015).

2-4-103. Applicability to contracts.

This chapter shall not be construed to invalidate any contracts heretofore made, but insofar as contracts are concerned shall be applicable only with respect to contracts and agreements made subsequent to March 3, 1981.

History. Acts 1981, No. 301, § 6; A.S.A. 1947, § 34-125.

2-4-104. [Repealed.]

Publisher's Notes. This section, concerning nonapplicability to certain agricultural facilities, was repealed by Acts 2005, No. 2257, § 3. The section was derived from Acts 1981, No. 301, § 7; A.S.A. 1947, § 34-126.

2-4-105. Local ordinances void.

Any and all ordinances adopted by any municipality or county in which an agricultural operation is located making or having the effect of making the agricultural operation or any agricultural facility or its appurtenances a nuisance or providing for an abatement of the agricultural operation or the agricultural facility or its appurtenances as a nuisance in the circumstances set forth in this chapter are void and shall have no force or effect.

History. Acts 1981, No. 301, § 5; A.S.A. 1947, § 34-124; Acts 2005, No. 2257, § 4.

Amendments. The 2005 amendment substituted “operation is” for “facility is” and “agricultural operation or any” for “operation of any”.

2-4-106. Actions for injuries or damages not affected.

The provisions of this chapter shall not affect or defeat the right of any person, firm, or corporation to recover damages for any injuries or damages sustained by them on account of any pollution of or change in the condition of the waters of any stream or on account of any overflow of the lands of any person, firm, or corporation.

History. Acts 1981, No. 301, § 4; A.S.A. 1947, § 34-123.

Research References

U. Ark. Little Rock L. Rev.

Kristin Titley, Note: Environmental Law—Regulation of Concentrated Animal Feeding Operations—Reducing the Nuisance: How Arkansas Can Use Its Right-to-Farm Statute to Protect Against the Destruction of CAFOs, 37 U. Ark. Little Rock L. Rev. 495 (2015).

2-4-107. Operation not to become nuisance.

  1. An agricultural operation or its facilities or appurtenances shall not be or become a public or private nuisance as a result of any changed conditions in and about the locality after it has been in operation for a period of one (1) year or more when the agricultural operation or its facilities or appurtenances were not a nuisance at the time the agricultural operation began.
    1. Except as provided in this section, an agricultural operation shall not be found to be a public or private nuisance if the agricultural operation alleged to be a nuisance employs methods or practices that are commonly or reasonably associated with agricultural production.
    2. An agricultural operation that employs methods or practices that are commonly or reasonably associated with agricultural production shall not be found to be a public or private nuisance as a result of any of the following activities or conditions:
      1. Change in ownership or size;
      2. Nonpermanent cessation or interruption of farming;
      3. Participation in any government-sponsored agricultural program;
      4. Employment of new technology; or
      5. Change in the type of agricultural product produced.
    1. Notwithstanding any other provision of this section to the contrary, an agricultural operation shall not be found to be a public or private nuisance if the agricultural operation:
      1. Was established before the commencement of the use of the area surrounding the agricultural operation for nonagricultural activities; and
      2. Employs methods or practices that are commonly or reasonably associated with agricultural production.
    2. Employment of methods or practices that are commonly or reasonably associated with agricultural production or are in compliance with any state or federally issued permit shall create a rebuttable presumption that an agricultural operation is not a nuisance.
  2. The court may award expert fees, reasonable court costs, and reasonable attorney's fees to the prevailing party in any action brought to assert that an agricultural operation is a public or private nuisance.

History. Acts 1981, No. 301, § 3; A.S.A. 1947, § 34-122; Acts 2005, No. 2257, § 5.

Amendments. The 2005 amendment substituted, in (a), “operation or its facilities or appurtenances” for “facility, its appurtenances, or the operation thereof” and “agricultural operation or its facilities or appurtenances were” for “facility, its appurtenances, or the operation thereof was”; and added (b)-(d).

Research References

U. Ark. Little Rock L. Rev.

Kristin Titley, Note: Environmental Law—Regulation of Concentrated Animal Feeding Operations—Reducing the Nuisance: How Arkansas Can Use Its Right-to-Farm Statute to Protect Against the Destruction of CAFOs, 37 U. Ark. Little Rock L. Rev. 495 (2015).

2-4-108. Liberal construction.

This chapter is remedial in nature and shall be liberally construed to effectuate its purposes.

History. Acts 2005, No. 2257, § 2[6].

Publisher's Notes. As passed, Acts 2005, No. 2257, contained two sections designated as 2.

Chapter 5 Domestic Fish Farming

Effective Dates. Acts 1961, No. 166, § 5: Mar. 6, 1961. Emergency clause provided: “It is hereby found and determined by the General Assembly that many of the laws of this state are not clear as to the definition of fish farming, and that confusion often arises in interpreting many of such laws because of the lack of clarity as to the definition of the term ‘fish farming’ and that the immediate passage of this act is necessary to clarify the definition of such term. Therefore, an emergency is hereby declared to exist and this act, being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Subchapter 1 — General Provisions

2-5-101. Legislative intent.

In recognition of the fact that domestic fish farming has become an important part of the agricultural economy of this state, the General Assembly determines and declares that whenever any of the statutes, laws, or rules promulgated pursuant thereto shall use any of the following terms, the terms so used and when used shall be deemed and construed to include within the common or statutory definition the following:

  1. “Agriculture” or “agricultural pursuit” or any similar term means the cultivation, growing, harvesting, or marketing of domesticated fish;
  2. “Cultivated crop” means domesticated fish which are grown, managed, or harvested on an annual, semiannual, biennial, or short-interval basis; and
  3. “Livestock” means domesticated fish which are grown, managed, harvested, or marketed as a cultivated crop.

History. Acts 1961, No. 166, § 1; A.S.A. 1947, § 78-1801.

2-5-102. Definition.

As used in this subchapter, unless the context otherwise requires, “domesticated fish” means any fish that are spawned and grown, managed, harvested, and marketed on an annual, semiannual, biennial, or short-term basis in privately owned waters as privately owned waters are defined in § 15-43-301.

History. Acts 1961, No. 166, § 2; A.S.A. 1947, § 78-1802.

2-5-103. Game and Fish Commission not affected.

Nothing in this subchapter shall be interpreted or construed to affect, change, or alter any of the powers or controls over fish and wildlife in this state vested in the Arkansas State Game and Fish Commission under Arkansas Constitution, Amendment 35.

History. Acts 1961, No. 166, § 3; A.S.A. 1947, § 78-1803.

Cross References. Arkansas State Game and Fish Commission, § 15-41-102 et seq.

Subchapter 2 — Commercial Bait and Ornamental Fish Act

Cross References. Commercial Bait and Ornamental Fish Fund, § 19-6-801.

2-5-201. Title.

This subchapter shall be known and may be cited as the “Commercial Bait and Ornamental Fish Act”.

History. Acts 2005, No. 1449, § 1.

2-5-202. Purpose.

The purpose of this subchapter is to:

  1. Establish a voluntary certification program to provide high quality farm-raised bait and ornamental fish free of certain diseases, undesirable plants, undesirable animals, and other contaminants deemed injurious to the fish or fisheries;
  2. Conduct programs to promote the use and sale of certified bait and ornamental fish raised in Arkansas; and
  3. Provide state oversight of and funding from the beneficiaries of the program.

History. Acts 2005, No. 1449, § 1.

2-5-203. Definitions.

As used in this subchapter:

  1. “Board” means the State Plant Board; and
  2. “Person” means an individual, partnership, limited liability company, corporation, association, or two (2) or more individuals having a joint or common interest.

History. Acts 2005, No. 1449, § 1.

2-5-204. Powers and duties of State Plant Board.

  1. The State Plant Board shall:
    1. Administer this subchapter and the Commercial Bait and Ornamental Fish Fund;
    2. Certify the commercial bait and ornamental fish that meet the standards and qualifications of the board under this subchapter;
    3. Investigate methods of production and the occurrence of certain diseases, undesirable plants, undesirable animals, and other contaminants of commercial bait and ornamental fish and fisheries;
    4. Conduct marketing programs to promote the use and sale of certified bait and ornamental fish raised in Arkansas; and
      1. Promulgate all rules the board considers necessary or desirable to implement this subchapter.
      2. The board shall establish in its rules the management practices, testing procedures, and appropriate science criteria required for certification under this subchapter.
  2. The board may authorize the Director of the State Plant Board to appoint any deputy the board considers necessary to implement this subchapter.

History. Acts 2005, No. 1449, § 1.

Cross References. Commercial Bait and Ornamental Fish Fund, § 19-6-801.

2-5-205. Certificates.

  1. A person that has met the standards and qualifications established by the State Plant Board under this subchapter shall receive from the board a commercial bait and ornamental fish certificate.
  2. The certificate shall be in the form prescribed by the board and shall attest that the commercial bait and ornamental fish covered by the certificate have met the standards and qualifications established by the board under this subchapter.
  3. The certificate shall be displayed only by a person who is certified under this subchapter.

History. Acts 2005, No. 1449, § 1.

2-5-206. Fees.

  1. The State Plant Board may prescribe application, certification, and other fees to cover the costs of inspection, certification, and marketing under this subchapter.
  2. All fees collected under this subchapter shall be deposited into the Commercial Bait and Ornamental Fish Fund to be used by the board to administer this subchapter.

History. Acts 2005, No. 1449, § 1.

Cross References. Commercial Bait and Ornamental Fish Fund, § 19-6-801.

2-5-207. Unlawful acts — Penalties — Revocation of certificate.

  1. It is unlawful for any person to:
    1. Use the term “Arkansas certified” or any similar term concerning the quality of bait or ornamental fish without the proper certification from the State Plant Board;
    2. Falsely advertise or represent any bait or ornamental fish as being certified by the board;
    3. Use any emblem, label, or language for the purpose of misleading a person into believing that any bait or ornamental fish has been certified by the board when the certification has not been obtained;
    4. Misuse any tag, label, or certificate issued by the board;
    5. Obtain or attempt to obtain the certification of any bait or ornamental fish by making a false statement or misrepresentation to the board or to the board's inspectors, deputies, or agents;
    6. Violate any rule of the board under this subchapter; or
    7. Violate any agreement made as a condition for receiving a certificate.
  2. Any person who pleads guilty or nolo contendere to or is found guilty of violating this section is guilty of a violation and shall be punished by a fine of not less than twenty-five dollars ($25.00) nor more than five hundred dollars ($500) for each offense.
    1. A certificate issued under this subchapter may be revoked by the Director of the State Plant Board after a hearing before the director, regardless of whether a prosecution is commenced.
      1. Any person whose certificate is revoked by the director is entitled to an appeal to the board.
      2. The decision of the board on appeal is final.

History. Acts 2005, No. 1449, § 1; 2007, No. 827, § 1; 2019, No. 315, § 3.

Amendments. The 2007 amendment substituted “violation” for “misdemeanor” in (b), and made stylistic changes.

The 2019 amendment deleted “or regulation” following “rule” in (a)(6).

2-5-208. Intergovernmental cooperation.

In administering this subchapter, the State Plant Board shall cooperate to the fullest extent possible with other agencies of the state and the federal government.

History. Acts 2005, No. 1449, § 1; 2007, No. 827, § 2.

Amendments. The 2007 amendment substituted “shall cooperate” for “may cooperate”.

Chapter 6 Catfish Processor Fair Practices Act

Effective Dates. Acts 1987, No. 365, § 11: July 1, 1987.

Acts 1989 (3rd Ex. Sess.), No. 53, § 10: Nov. 16, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Catfish Processors Fair Practices Act of 1987 is in need of strengthening in order to grant additional authority to the State Plant Board to protect Arkansas catfish producers from unfair practices; that this Act grants such authority; and that this Act should go into effect immediately in order to provide additional protection to Arkansas catfish producers as soon as possible. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

2-6-101. Title.

This chapter shall be known and may be cited as the “Arkansas Catfish Processor Fair Practices Act of 1987”.

History. Acts 1987, No. 365, § 1.

Case Notes

Cited: Jackson v. Swift-Eckrich, 830 F. Supp. 486 (W.D. Ark. 1993).

2-6-102. Purpose.

The General Assembly finds that a burden on and an obstruction to intrastate commerce in the catfish farming industry is caused when payment is not made for the catfish and that these arrangements are contrary to the public interest. This chapter is intended to remedy this burden on and obstruction to intrastate commerce in catfish and to protect the public interest.

History. Acts 1987, No. 365, § 3.

2-6-103. Definitions.

As used in this chapter:

  1. “Board” means the State Plant Board;
  2. “Capable of use as human food” means and applies to any catfish or part or product of any catfish unless it is denatured or otherwise identified as required by rules prescribed by the board to deter its use as human food, or unless it is naturally inedible by humans;
  3. “Cash sale” means a sale in which the seller does not expressly extend credit to the buyer;
  4. “Catfish” means any species of the scientific order Ostariophysida, family Ictaluridae;
  5. “Class A registrant” means any catfish processor who purchases at least fifty thousand dollars ($50,000) worth of catfish annually from catfish producers;
  6. “Direct retail sale” means the sale of catfish products directly to the consumer;
  7. “Director” means the Director of the State Plant Board or his or her designee;
  8. “Owner” means a person or a producer that owns an equity interest, directly or indirectly, in a catfish processor;
  9. “Person” includes any individual, partnership, corporation, and association, or other legal entity;
  10. “Processor” means any person engaged in handling, storing, preparing, manufacturing, packing, or holding catfish products;
  11. “Producer” means any person engaged in the business of producing catfish by any method;
  12. “Product” means any catfish product capable of use as human food which is made wholly or in part from any catfish or portion thereof; and
  13. “Secured party” means a lender who has a perfected security interest under the Uniform Commercial Code, § 4-1-101 et seq., in the catfish being sold.

History. Acts 1987, No. 365, § 4; 1989 (3rd Ex. Sess.), No. 53, § 1; 2003, No. 128, § 1.

2-6-104. Administration.

  1. This chapter shall be administered by the State Plant Board.
  2. The board is authorized to promulgate such rules as may be necessary for the efficient enforcement of this chapter, including the establishment of reasonable fees for registering with the board.

History. Acts 1987, No. 365, §§ 2, 8; 1989 (3rd Ex. Sess.), No. 53, § 2.

2-6-105. Registration and suspension — Exception.

    1. Except as provided in subsection (e) of this section, every catfish processor in the state shall register with the State Plant Board.
    2. Applications for registration as a catfish processor under this chapter shall be made on forms prescribed by the Director of the State Plant Board.
    3. Every application is to be accompanied by an application fee of one hundred fifty dollars ($150), a certified financial statement in a form prescribed by the director, and any further information the director may by rule require.
  1. The board shall promulgate such rules as necessary to secure the performance of catfish purchasing obligations.
  2. Whenever, after due notice and hearing, the board finds any registrant is insolvent or has violated any provisions of this chapter, it may issue an order suspending the registrant for a reasonable specified period. The order of suspension shall take effect within five (5) days unless suspended, modified, or set aside by the board or a court of competent jurisdiction.
  3. If the board finds any processor is insolvent, is issuing invalid or insufficient checks, or is causing a breach of contract with the producer by failure to pay the producer in accordance with the contract, the board shall issue an order requiring the processor to cease and desist from purchasing catfish except under such conditions as the board may prescribe to effectuate the purposes of this chapter.
  4. Those processors whose average annual purchases from catfish producers do not exceed one hundred thousand dollars ($100,000) shall be exempt from the provisions of this section.

History. Acts 1987, No. 365, § 6; 1989 (3rd Ex. Sess.), No. 53, § 3; 1995, No. 190, § 1; 1995, No. 191, § 1; 2019, No. 315, § 4.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (a)(3); and deleted “and regulations” following “rules” in (b).

2-6-106. Unlawful practices — Penalties.

    1. With respect to catfish or catfish products, it shall be unlawful for any processor to engage in or use any unfair, unjustly discriminatory, or deceptive practice.
    2. If any person subject to this chapter violates any of the provisions of this chapter or of any order of the State Plant Board under this chapter relating to the purchase, sale, or handling of catfish, he or she shall be liable to the person injured for the full amount of damages sustained in consequence of the violation.
  1. This liability may be enforced either by complaint to the board or by suit in any circuit court of competent jurisdiction. This section shall not in any way abridge or alter the remedies now existing at common law or by statute, but the provisions of this section are in addition to those remedies.
  2. The board is authorized to apply for and the court is authorized to grant a temporary or permanent injunction restraining any person from violating or continuing to violate any of the provisions of this chapter or any rule promulgated under this chapter, notwithstanding the existence of other remedies at law. The injunction shall be issued without bond.
  3. The board may assess civil penalties against any Class A registrant as follows:
    1. Not more than fifty dollars ($50.00) for each day payment to the producer is late under § 2-6-107(a)(2);
    2. Not more than one hundred dollars ($100) for each day payment to the producer is late under the contract between the registrant and the producer; and
    3. In instances where the registrant has paid a producer with an invalid or insufficient check, not more than two hundred dollars ($200) for each day the check is invalid or insufficiently funded.

History. Acts 1987, No. 365, §§ 7, 9, 10; 1989 (3rd Ex. Sess.), No. 53, § 4; 2019, No. 315, § 5.

Amendments. The 2019 amendment deleted “or regulation” following “rule” in the first sentence of (c).

2-6-107. Purchase methods — Delays.

  1. Each processor shall use one (1) of the following methods to purchase catfish products:
    1. The processor may deliver to the producer or his or her authorized representative and any secured parties the full amount of the purchase price on the same day the catfish product is purchased and possession is transferred;
      1. Before the close of the fourteenth calendar day following the purchase of the catfish products and transfer or possession of the catfish products, the processor may deliver to the producer or his or her authorized representative and any secured parties the full amount of the purchase price.
      2. If the producer or his or her authorized representative or secured parties are not present to receive payment at the point of transfer or possession, as provided in subdivision (a)(1) of this section, the processor shall wire transfer funds or place a check in the United States mail for the full amount of the purchase price, properly addressed to the producer and any secured parties, within the time limits specified in this subsection. This action shall be deemed in compliance with the requirement for prompt payment under this subdivision (a)(2); or
    2. The parties to the purchase and sale of catfish products may expressly agree in writing before the purchase or sale to effect payment in a manner other than that required in subdivision (a)(1) or (2) of this section if the manner of payment does not interfere with the rights of secured parties. Any agreement shall be disclosed in the records of any producer selling the catfish and in the processors' records and on the accounts or other documents issued by the processors relating to the transaction.
    1. Regardless of the method elected under subdivision (a)(2) of this section to purchase catfish products, a Class A registrant, before the transaction, shall be required to:
      1. Be bonded in the amount of two hundred fifty thousand dollars ($250,000) or in an amount which may be determined by the State Plant Board;
      2. Post a security bond in the amount of two hundred fifty thousand dollars ($250,000) or in an amount which may be determined by the board; or
      3. Provide cash security, letters of credit, and such other evidences of security as shall be authorized by the board.
    2. However, if a Class A registrant purchases catfish solely and exclusively from producers that are also the owners of the processor, then the Class A registrant is exempt from the bonding or security requirements imposed under subdivision (b)(1) of this section.
  2. Any delay or attempt to delay, by a processor purchasing catfish products, the collection of funds as provided in this chapter or otherwise for the purpose of or resulting in extending the normal period of payment for the catfish shall be considered an unfair practice in violation of this chapter.
    1. At the time catfish are delivered to a processor and unloaded from a live-haul truck, the processor shall weigh the catfish using a device that is of a type suitable for the weighing of catfish.
    2. Deductions for trash fish, turtles, and other foreign material except water shall be determined by a separate weighing of the same.
    3. There shall be no water tare nor deductions made for water in weighing baskets.
    4. Processors are responsible for draining water from weighing baskets.
    1. Scales used to weigh catfish and foreign material under this section must be capable of electronically printing a ticket that provides an exact duplicate of the weight indicated.
    2. A copy of the ticket shall be provided to the producer at the time of weighing.
    3. The ticket shall also contain the following:
      1. The name and address of the processor;
      2. The name of the owner of the catfish being weighed;
      3. The date the catfish are weighed;
      4. The signature of the individual who weighs the catfish; and
      5. Any additional information as the board deems necessary for the lawful and accurate recording of the weight of the catfish.
  3. Processors who process less than seventeen thousand five hundred pounds (17,500 lbs.) of catfish per week are not required to use the electronic printing scales otherwise required by this section.(g) The board shall be responsible for the enforcement of this section, and its agents shall perform periodic inspections of processing plants to ensure that the provisions of this section are being carried out and that all deductions for foreign material are legitimate and fair to the producer.

History. Acts 1987, No. 365, § 5; 1989 (3rd Ex. Sess.), No. 53, § 5; 1991, No. 764, § 1; 2003, No. 128, § 2.

2-6-108. [Repealed.]

Publisher's Notes. This section, concerning this chapter's applicability to unbonded processors, was repealed by identical Acts 1995, Nos. 190 and 191, § 2. The section was derived from Acts 1989 (3rd Ex. Sess.), No. 53, § 6.

2-6-109. Receivership — Petition — Assets.

  1. The Director of the State Plant Board in his or her discretion may, following a suspension of a Class A registrant as provided in this chapter, file a verified petition in the proper court requesting that the director be appointed as a receiver to take custody of catfish in the registrant's facility and to provide for the disposition of those assets in the manner provided in this chapter and under the supervision of the court.
  2. The petition shall be filed in the county in which the registrant is located. The proper court shall appoint the director as receiver.
  3. Upon the filing of the petition, the court shall issue ex parte such temporary orders as may be necessary to preserve or protect the assets in receivership, or the value thereof, and the rights of producers, until a plan of disposition is approved.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-110. Receivership — Plan for disposition of catfish.

A petition filed by the Director of the State Plant Board under § 2-6-109 shall be accompanied by the director's plan for disposition of the processed catfish. The plan may provide for the pro rata delivery of part or all of the processed catfish to producers holding weigh tickets, or may provide for the sale under the supervision of the director of part or all of the processed catfish for the benefit of those producers, or may provide for any combination thereof, as the director in his or her discretion determines to be necessary to minimize losses.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-111. Receivership — Hearings on plan — Notice — Service.

  1. When a petition is filed by the Director of the State Plant Board under § 2-6-109 the clerk of court shall set a date for hearing on the director's proposed plan of disposition at a time not less than ten (10) nor more than fifteen (15) calendar days after the date the petition is filed.
  2. Copies of the petition, the notice of hearing, and the director's plan of disposition shall be served upon the Class A registrant and upon the surety company issuing the Class A registrant's bond in the manner required for service of an original notice.
  3. A delay in effecting service upon the Class A registrant or surety shall not be cause for denying the appointment of a receiver and shall not be grounds for invalidating any action or proceeding in connection therewith.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-112. Receivership — Notification to weigh ticket holders.

  1. The Director of the State Plant Board shall cause a copy of each of the documents served upon the Class A registrant under § 2-6-111 to be mailed by ordinary mail to every person holding a weigh ticket issued by the Class A registrant, as determined by the records of the Class A registrant or the records of the director.
  2. The failure of any person referred to in this section to receive the required notification shall not invalidate the proceedings on the petition for the appointment of a receiver or any portion thereof.
  3. Persons referred to in this section are not parties to the action unless admitted by the court upon application therefor.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-113. Receivership — Publication of notification of receiver's appointment.

When appointed as a receiver under this chapter the Director of the State Plant Board shall cause notification of the appointment to be published once each week for two (2) consecutive weeks in a newspaper of general circulation in each of the counties in which the Class A registrant maintains a business location, and in a newspaper of general circulation in this state.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-114. Receivership — Designee — Duties of director.

The Director of the State Plant Board may designate one (1) of his or her employees to appear on behalf of the director in any proceedings before the court with respect to the receivership, and to exercise the functions of the director as receiver, except that the director shall determine whether or not to petition for the appointment as receiver, shall approve the proposed plan for disposition of processed catfish, shall approve the proposed plan for distribution of any cash proceeds, and shall approve the proposed final report.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-115. Receivership — Applicability of administrative procedures.

The actions of the Director of the State Plant Board in connection with petitioning for appointment as a receiver, and all actions under such appointment, shall not be subject to the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-116. Receivership — Sureties.

When the Director of the State Plant Board is appointed as receiver under this chapter, the surety on the bond of the Class A registrant shall be joined as a party defendant by the director. If required by the court, the surety shall pay the bond proceeds, or so much thereof as the court finds necessary, into the court, and when so paid the surety shall be absolutely discharged from any further liability under the bond to the extent of the payment.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-117. Receivership — Notice of claims filing deadline.

  1. When appointed as receiver under this chapter, the Director of the State Plant Board is authorized to give notice in the manner specified by the court to persons holding weigh tickets issued by the Class A registrant to file their claims within sixty (60) calendar days after the date of appointment.
  2. Failure to timely file a claim shall defeat the claim with respect to the surety bond and any catfish, or proceeds from the sale of catfish, except to the extent of any excess remaining after all timely claims are paid in full.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-118. Receivership — Sale of processed catfish — Merchandiser.

  1. When the court approves the sale of processed catfish the Director of the State Plant Board shall employ a merchandiser to effect the sale of those commodities.
  2. A person employed as a merchandiser must meet the following requirements:
    1. The person shall be experienced or knowledgeable in the operation of processors registered under this chapter, and if the person has ever held a registration certificate issued under this chapter, the person shall never have had the registration suspended;
    2. The person shall be experienced or knowledgeable in the marketing of aquacultural products;
    3. The person shall not be the holder of a weigh ticket issued by the Class A registrant and shall not have a claim against the Class A registrant, whether as a secured or unsecured creditor, and otherwise shall not have any pecuniary interest in the Class A registrant or the Class A registrant's business.
  3. The merchandiser shall be entitled to reasonable compensation as determined by the director.
  4. A sale of processed catfish shall be made in a commercially reasonable manner and under the supervision of the director.
  5. The director shall have authority to sell the processed catfish, and provisions of the Uniform Commercial Code, § 4-1-101 et seq., to the contrary notwithstanding, any processed catfish so sold shall be free of all liens and other encumbrances.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-119. Receivership — Distribution to producers.

The plan of disposition, as approved by the court, shall provide for the distribution of the processed catfish, or the proceeds from the sale of processed catfish or the proceeds from any surety bond, or any combination thereof, less expenses incurred by the Director of the State Plant Board in connection with the receivership, to producers on a pro rata basis as their interests are determined. Distribution shall be without regard to any setoff, counterclaim, or charge.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-120. Receivership — Continued operation of business.

The Director of the State Plant Board may, with the approval of the court, continue the operation of all or any part of the business of the Class A registrant on a temporary basis and take any other course of action or procedure which will serve the interests of the producers.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-121. Receivership — Reimbursement.

The Director of the State Plant Board shall be entitled to reimbursement out of processed catfish or proceeds held in receivership for all expenses incurred as court costs or in handling and disposing of processed catfish, and for all other costs directly attributable to the receivership. The right of reimbursement of the director shall be prior to any claims against the processed catfish or proceeds of sale thereof and shall constitute a claim against the surety bond of the Class A registrant.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-122. Receivership — Proceeds — Termination.

In the event the approved plan of disposition requires the sale of processed catfish, or the distribution of proceeds from the surety bond, or both, the Director of the State Plant Board shall submit to the court a proposed plan of distribution of those proceeds. Upon such notice and hearing as may be required by the court, the court shall accept or modify the proposed plan. When the plan is approved by the court and executed by the director, the director shall be discharged and the receivership terminated.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

2-6-123. Receivership — Final report.

At the termination of the receivership, the Director of the State Plant Board shall file a final report containing the details of his or her actions, together with such additional information as the court may require.

History. Acts 1989 (3rd Ex. Sess.), No. 53, § 7.

Chapter 7 Farm Mediation

Research References

Ark. L. Notes.

Kilpatrick, How Much Do You Know (or Care) About Alternative Dispute Resolution?, 1996 Ark. L. Notes 53.

Subchapter 1 — General Provisions

Research References

Am. Jur. 4 Am. Jur. 2d, Alt. Disp. Res., § 1 et seq.

U. Ark. Little Rock L.J.

Survey, Agricultural Law, 12 U. Ark. Little Rock L.J. 597.

2-7-101. Title.

This chapter shall be known and may be cited as the “Arkansas Farm Mediation Act”.

History. Acts 1989, No. 829, § 1.

Case Notes

Cited: First Nat'l Bank v. Clinton, 304 Ark. 411, 802 S.W.2d 928 (1991).

2-7-102. Definitions.

As used in this chapter, unless the context otherwise requires:

    1. “Action” means a court action or legal recourse to the courts of the State of Arkansas by a creditor against a farmer for payment of a debt, to enforce or foreclose a security interest, lien, or mortgage, or to repossess or declare a creditor's interest in agricultural property.
    2. “Action” includes, but is not limited to, garnishment, replevin, foreclosure, execution of judgment, and involuntary receivership;
  1. “Agricultural property” means all of the following:
    1. Real property that is used principally for farming or ranching;
    2. Real property that is a farmer's principal place of residence and any land contiguous to the residence;
    3. Personal property that is used as security to finance farming or ranching; and
    4. Personal property that is used for farming or ranching;
  2. “Creditor” means any person who holds a mortgage on agricultural property, who has a lien on or a security interest in agricultural property, or who is a judgment creditor with a judgment against a farmer affecting the farmer's agricultural property;
  3. “Farmer” means any person who is engaged in farming or ranching, who has at least twenty thousand dollars ($20,000) in outstanding agricultural loans that are secured by real estate, crops, livestock, farm machinery, or other agricultural supplies, and who either:
    1. Owns or leases a total of fifty (50) acres or more of land that is agricultural property; or
    2. Has had gross sales of farm products of at least twenty thousand dollars ($20,000) in any of the preceding three (3) years;
  4. “Farming” or “ranching” means the employment or operation of real property for the production of agricultural products including, but not limited to, the following:
    1. The production or cultivation of agricultural, horticultural, or aquacultural commodities such as field crops, rice, soybeans, cotton, sorghum, corn, wheat, fruit, vegetables, mushrooms, nursery stock, ornamental trees, sod, or flowers;
    2. Animal or poultry husbandry and the production of poultry and poultry products, livestock, equine or fur-bearing animals and wildlife, including the raising, breeding, shearing, grazing, or other feeding of these animals;
    3. Dairy production;
    4. Viticulture, wine-making, and related activities; and
    5. On-site storing, handling, and processing incidental to the production of the foregoing agricultural or horticultural products and commodities;
  5. “Mediation” means the process in which a neutral person or persons intermediate between or among parties for the purpose of facilitating the settlement of their dispute by mutual agreement; and
  6. “Party” or “parties” means, with respect to the mediation of a dispute affecting a farmer's agricultural property, the farmer, a creditor of the farmer, and any other person necessary to the resolution of a dispute or an action.

History. Acts 1989, No. 829, § 2.

Case Notes

Application.

Trial court did not err in refusing to apply the Arkansas Farm Mediation Act, § 2-7-101 et seq., to an action relating to a writ of execution where a debtor failed to show that this proceeding was in connection with a secured indebtedness. Moreover, he did not make it clear that the loans were secured by real estate, crops, livestock, farm machinery, or other agricultural supplies, as required in the definition of a “farmer.” Looney v. Raby, 100 Ark. App. 326, 268 S.W.3d 345 (2007).

2-7-103. [Repealed.]

Publisher's Notes. This section, which excluded from this chapter commercial banks chartered by the state or federal government, was repealed by Acts 1989 (1st Ex. Sess.), No. 36, § 16. The section was derived from Acts 1989, No. 829, § 11.

Subchapter 2 — Farm Mediation Office

Effective Dates. Acts 2015, No. 1060, § 20: Apr. 4, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the efficient administration of the programs and functions conducted by the Arkansas Development Finance Authority is critical to the economic well-being of the state; that it is vital that business and citizens are immediately encouraged to the full extent possible to use the authority's programs and thereby help the economic development of state resources; and that this act is immediately necessary to ensure that the authority's programs are operated efficiently and in a manner that does not hinder participation or negatively impact program applicants. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-7-201. Creation.

  1. There is hereby created within the Department of Agriculture the Arkansas Farm Mediation Office which shall administer the Arkansas Farm Mediation Program to provide mediation and debt management services to farmers and their creditors in the State of Arkansas.
    1. The program shall be administered by the Secretary of the Department of Agriculture who shall employ mediators and administrative staff in such numbers as are necessary and as the General Assembly may appropriate to carry out the provisions of this chapter.
    2. The Secretary of the Department of Agriculture may apply to the United States Secretary of Agriculture or any other agency or department for any financial assistance for the administration and operation of the program.
    3. The Secretary of the Department of Agriculture or his or her designee shall select mediators who are knowledgeable in the areas of finance, agriculture, and negotiation and shall train them in any other matters as are necessary to carry out their functions under this chapter.
    4. The Secretary of the Department of Agriculture may promulgate rules to carry out the provisions of this chapter.

History. Acts 1989, No. 829, § 3; 2015, No. 1060, § 1; 2019, No. 910, § 10.

A.C.R.C. Notes. The Division of Agriculture Development was transferred from the Arkansas Industrial Development Commission to the Arkansas Development Finance Authority by Acts 1989, No. 885.

Amendments. The 2015 amendment substituted “president” for “director” throughout the section; deleted “Division of Agriculture Development of the” preceding “Arkansas Development Finance Authority” in (a); substituted “Arkansas Development Finance Authority” for “Division of Agriculture Development” in (b)(1); and substituted “The president may promulgate rules” for “The director shall have the authority to promulgate any necessary rules and regulations” in (b)(4).

The 2019 amendment substituted “Department of Agriculture” for “Arkansas Development Finance Authority” in (a); and substituted “Secretary of the Department of Agriculture” for “President of the Arkansas Development Finance Authority” and “president” throughout (b).

2-7-202. Disclosure of information.

  1. All materials, data, and information received by the Arkansas Farm Mediation Office are confidential and are not subject to examination or disclosure as public information under the Freedom of Information Act of 1967, § 25-19-101 et seq.
  2. No mediator or administrative employee of the office shall knowingly disclose any materials, data, or information concerning a mediation request or suspension order without the consent of the farmer and the creditors involved.
  3. Mediation meetings between a farmer and any other parties conducted by a mediator are not open to public participation and are not subject to the provisions for open meetings under the Freedom of Information Act of 1967, § 25-19-101 et seq.

History. Acts 1989, No. 829, § 10.

2-7-203. Forms.

The Arkansas Farm Mediation Office shall prepare all forms necessary for the administration of this chapter and shall ensure that forms are disseminated and that the availability of mediation under this chapter is publicized so that creditors and borrowers of agricultural loans receive adequate notification of the Arkansas Farm Mediation Program.

History. Acts 1989, No. 829, § 3.

Subchapter 3 — Mediation

2-7-301. Voluntary mediation.

    1. A farmer and any creditor of the farmer may voluntarily participate in mediation under the Arkansas Farm Mediation Program if they wish to resolve a dispute between them that involves the creditor's interest in a mortgage, lien, security interest, or judgment affecting the agricultural property of the farmer.
    2. Voluntary mediation shall occur before an action has been initiated in court in which the farmer and creditor are parties.
  1. The Arkansas Farm Mediation Office shall adopt voluntary mediation application and request forms.

History. Acts 1989, No. 829, § 5.

2-7-302. Release before proceedings required — Exceptions.

  1. In connection with a secured indebtedness of twenty thousand dollars ($20,000) or more, no proceeding against a farmer shall be commenced to foreclose a mortgage on agricultural property, to terminate a contract for deed to purchase agricultural property, to repossess or foreclose a security interest in agricultural property, to set off or seize an account, moneys, or other asset which is agricultural property, or to enforce any judgment against agricultural property unless the creditor has first obtained a release as provided in this chapter.
  2. An action for attachment or replevin may be commenced without first obtaining a release in those cases provided for under § 16-110-101(1)(A)(vi)-(viii) or § 18-60-807.

History. Acts 1989, No. 829, § 4.

Case Notes

Application.

Trial court did not err in refusing to apply the Arkansas Farm Mediation Act, § 2-7-101 et seq., to an action relating to a writ of execution where a debtor failed to show that this proceeding was in connection with a secured indebtedness. Moreover, he did not make it clear that the loans were secured by real estate, crops, livestock, farm machinery, or other agricultural supplies, as required in the definition of a “farmer.” Looney v. Raby, 100 Ark. App. 326, 268 S.W.3d 345 (2007).

Cited: First Nat'l Bank v. Clinton, 304 Ark. 411, 802 S.W.2d 928 (1991).

2-7-303. Notice — Form and content.

  1. Before commencing any proceeding prohibited by this section, § 2-7-302, and §§ 2-7-304 — 2-7-306 without first obtaining a release, a creditor shall serve a notice on the farmer that the farmer may request mandatory mediation of the farm indebtedness.
    1. The notice shall be in a form and contain the information as required by rule.
    2. The Director of the Arkansas Farm Mediation Program shall make forms available in each county recorder's office.
  2. The notice shall contain, at a minimum, the following information:
    1. The name and address of the farmer;
    2. The name, address, and telephone number of the creditor;
    3. A description of the debt and the amount currently owed;
    4. A description of the agricultural property securing the debt;
    5. A description of the proceeding the creditor intends to commence or continue or the action the creditor intends to take;
    6. A statement that the farmer has the right to request mandatory mediation which could result in restructuring the debt;
    7. The address and telephone number of the director;
    8. A statement that a request for mandatory mediation must be served on the director within fourteen (14) days after service of the notice on the farmer; and
    9. The location of the office of the recorder of the county in which the farmer resides where an application form for requesting mandatory mediation may be obtained.
  3. A creditor shall also serve a copy of such mediation notice on the director within five (5) days after the mediation notice has been served on the farmer by the creditor.

History. Acts 1989, No. 829, § 4.

2-7-304. Requests for mediation.

All requests for mediation by a farmer under § 2-7-301 shall be served on the Director of the Arkansas Farm Mediation Program within fourteen (14) days after the mediation notice was served on the farmer by the creditor. Every request for mediation shall be in a form and contain the information required by the director.

History. Acts 1989, No. 829, § 4.

2-7-305. Information on services — Assignment of mediator.

  1. Within five (5) days after receiving a request for mediation, the Director of the Arkansas Farm Mediation Program shall inform the farmer and the creditor of any financial analysis or legal or other services available that may assist them in preparing for the mediation meeting and of any other requirements the farmer and creditor must meet before the mediation meeting.
    1. Within twenty-one (21) days after receiving a request for mediation, the director shall assign a mediator and serve notice on the farmer and all his or her known creditors of the name of the mediator, the time and place of the mediation meeting.
    2. The meeting shall be not more than forty-two (42) days after the director receives the request, and of any activities prohibited during mediation.

History. Acts 1989, No. 829, § 4.

2-7-306. When provisions not applicable.

Sections 2-7-302 — 2-7-305 shall not apply:

  1. Where the debt to be collected was listed as a scheduled debt by the farmer in a petition in bankruptcy or for which a proof of claim form has been filed by a creditor under United States Code, Title 11, Chapters 7, 11, 12, or 13; and
    1. The debt was discharged;
    2. The creditor was granted relief from the automatic stay;
    3. Provision for repayment, restructuring, or other treatment of the debt was made in a confirmed plan;
    4. In the year preceding the date of commencement of the collection action, the automatic stay provided for under 11 U.S.C. § 362 was in effect with regard to the debt for more than ninety (90) days; or
  2. When the Arkansas Farm Mediation Office has not adopted and promulgated bylaws, rules, or program guidelines necessary to implement this chapter or has not hired qualified mediators for the mediation region in which the agricultural property involved is located.

History. Acts 1989, No. 829, § 4.

2-7-307. Initial meeting — Subsequent meetings.

  1. The initial mediation meeting shall be attended by the farmer and the creditor who served the mediation notice. The meeting shall be at least one (1) hour long and may be continued for a longer period at the discretion of the parties involved. Other creditors of the farmer are strongly encouraged to attend and may attend all mediation meetings.
  2. After the initial meeting any further mediation meetings shall be held by consent of the parties.

History. Acts 1989, No. 829, § 6.

2-7-308. Right to attorney — Duties of mediator.

    1. A farmer or other party has the right to be represented by an attorney at any mediation meeting or hearing.
    2. A waiver of this right before any mediation meeting or hearing is ineffective.
  1. At the initial mediation meeting and subsequent meetings, the mediator shall:
    1. Listen to the farmer and the creditors desiring to be heard;
    2. Attempt to mediate between the farmer and the creditors to reach a consensus where possible;
    3. Advise the farmer and creditor as to the existence of available assistance programs;
    4. Encourage the parties to adjust, refinance, or provide for the payment of the farmer's debts; and
    5. Advise, counsel, and assist the farmer and creditors in attempting to arrive at an agreement for the future conduct of financial relations among the parties or to arrive at a settlement which may be stipulated to in court for the resolution to the court action.

History. Acts 1989, No. 829, §§ 7, 9.

2-7-309. Agreements.

If an agreement is reached between the farmer and any creditor or creditors, the agreement shall:

  1. Be signed by the farmer and any such creditor or creditors;
  2. Bind each to the terms of the agreement;
  3. Be enforced as a legal contract between the farmer and such creditor or creditors; and
  4. Constitute a mediation release.

History. Acts 1989, No. 829, § 8.

2-7-310. Release of creditor — Effective period.

  1. The Director of the Arkansas Farm Mediation Program shall issue a release upon request to any creditor who has paid any required fees and:
    1. Who has attended an initial mediation meeting under § 2-7-301 or § 2-7-307;
    2. Who has served a mediation notice on the farmer and the farmer has not requested mediation within the time allowed;
    3. When the farmer has waived mediation with respect to that creditor or the agricultural property at issue;
    4. When the agricultural property has been abandoned by the farmer;
    5. In the discretion of the director if the default is other than monetary;
    6. When ordered to do so by a court upon a finding by the court that mediation would be unduly burdensome and an extreme hardship on the creditor;
    7. Upon the failure of a farmer to appear at a scheduled mediation meeting; or
    8. As otherwise provided by rule.
  2. A release is effective as to any proceeding commenced or continued or any action taken one (1) year or less after its date of issuance, but a release is not effective as to any proceeding commenced or action taken more than one (1) year after its date of issuance.

History. Acts 1989, No. 829, § 8.

Chapter 8 Tax Credits for Biotechnology and Advanced Biofuels [Repealed.]

2-8-101 — 2-8-109. [Repealed.]

Publisher's Notes. This chapter was repealed by Acts 2009, No. 716, § 1. The chapter was derived from the following sources:

2-8-101. Acts 1997, No. 1117, § 1; 1999, No. 1367, § 1.

2-8-102. Acts 1997, No. 1117, § 2; 1999, No. 1367, § 2; 2001, No. 900, § 1.

2-8-103. Acts 1997, No. 1117, § 3; 2001, No. 900, § 2.

2-8-104. Acts 1997, No. 1117, § 4.

2-8-105. Acts 1997, No. 1117, § 5.

2-8-106. Acts 1997, No. 1117, § 6; 1999, No. 1367, § 4; 2001, No. 900, § 3.

2-8-107. Acts 1997, No. 1117, § 7.

2-8-108. Acts 1997, No. 1117, § 8; 1999, No. 1367, § 5.

2-8-109. Acts 1999, No. 1367, § 3.

Chapter 9 Catfish Industry

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-9-101. Purpose.

The purpose of this chapter is to promote the growth and development of the catfish industry in Arkansas by research, extension, promotion, and market development, thereby promoting the general welfare of the people of Arkansas.

History. Acts 1999, No. 790, § 1.

2-9-102. Definitions.

As used in this chapter:

  1. “Catfish industry” means any person or entity involved in rearing, processing, or selling of pond-raised catfish for potential profit, including any person, group, or company involved in a support industry;
  2. “Commercial catfish producer” means any person or entity involved in rearing catfish for potential profit;
  3. “Feed seller”, “seller”, or “feed dealer” means any person or entity that sells feed to a commercial catfish producer; and
  4. “Processor” means any person, group, or entity that purchases catfish from a commercial producer for the purpose of redistribution.

History. Acts 1999, No. 790, § 2.

2-9-103. Arkansas Catfish Promotion Board.

  1. The Arkansas Catfish Promotion Board is created. The board shall be composed of seven (7) members appointed by the Governor as follows:
      1. The Catfish Farmers of Arkansas, Inc., shall submit to the Governor the names of six (6) persons who are members of the catfish industry. The list of nominees shall include commercial catfish producers, processors, and feed dealers identified as such. The Arkansas Farm Bureau Federation shall submit to the Governor the names of six (6) persons who are commercial catfish producers. All members shall be residents of Arkansas.
      2. The Governor shall appoint four (4) members from the list submitted by the Catfish Farmers of Arkansas, Inc., and three (3) members from the list submitted by the Arkansas Farm Bureau Federation to serve on the board.
    1. Each year, not less than thirty (30) calendar days before the expiration of the terms of the current members of the board whose terms expire, the organizations named in subdivision (a)(1)(A) of this section shall submit to the Governor the names of two (2) nominees for each position to be filled on the board from the respective organizations, subject to the foregoing qualifications, and the Governor shall appoint the new members from each list of nominees. If no lists are submitted, the appointments shall be at the discretion of the Governor.
      1. Each member selected shall serve for a term of two (2) years and until his or her successor is selected as provided in this section.
      2. However, the initial members of the board shall be appointed for terms that will result in three (3) members' terms expiring after one (1) year and four (4) members' terms expiring after two (2) years.
    2. A midterm vacancy on the board shall be filled by appointment by the Governor from a list submitted within thirty (30) calendar days from the organization making the nomination for the position being vacated.
    3. A member of the board may be removed by a majority vote of the remaining board members for conviction of a felony, for not attending three (3) consecutive meetings, or if the member no longer meets the qualifications for his or her initial appointment.
  2. The President of the Catfish Farmers of Arkansas, Inc., shall call an organizational meeting of the board and shall preside until officers are elected. Members of the board shall organize immediately after their appointment and shall elect a chair, a vice chair, and a secretary-treasurer from the membership of the board, whose duties shall be those customarily exercised by those officers or specifically designated by the board. The board may appoint an executive director, who shall be the chief operating officer of the board and whose duties shall be designated by the board.
  3. The board may provide a salary for the executive director and for other necessary employees from funds derived from the assessments imposed in this chapter. Members of the board shall serve without compensation but may be reimbursed for reasonable expenses.
  4. The principal office of the board shall be located in Little Rock, Pulaski County, Arkansas.
  5. The resident agents of the board shall be the executive director of the board and the chair of the board, or either of them.

History. Acts 1999, No. 790, § 4.

2-9-104. Powers.

The Arkansas Catfish Promotion Board may:

  1. Plan and conduct a program of research, market development, and advertising designed to promote the catfish industry in Arkansas;
  2. Use funds derived from the assessments imposed in this chapter for research, extension, market development, and advertising designed to promote the catfish industry in Arkansas, including salaries and administration expenses;
  3. Have perpetual succession as a body politic and corporate and adopt bylaws for the regulation of its affairs and the conduct of its business;
  4. Prescribe rules and policies in connection with the performance of its functions and duties;
  5. Sue and be sued in its own name;
  6. Purchase, sell, or lease property of every description, real, personal, or mixed, including buildings or other facilities and equipment for the conduct of its business;
  7. Execute contracts and other instruments necessary or convenient in the exercise of its powers and functions; and
  8. Do any other acts and things necessary or convenient to carry out the purposes of this chapter and to exercise the powers granted by this chapter.

History. Acts 1999, No. 790, § 5.

2-9-105. Funding applications.

Disbursement of funds generated by this chapter shall be made only upon motion formally adopted by the Arkansas Catfish Promotion Board and presented to the Treasurer of State and only for the purpose prescribed in this chapter.

History. Acts 1999, No. 790, § 6; 2001, No. 215, § 1.

2-9-106. Voter referenda.

  1. The Arkansas Catfish Promotion Board shall maintain a list of commercial producers of catfish who are entitled to vote in referenda, shall prepare ballots for the referenda, and shall prescribe voting procedures. The board shall mail a ballot by registered mail to every commercial catfish producer identified on the list maintained by the board. Each producer shall be entitled to only one (1) vote.
  2. In all referenda, in order to be eligible to vote, a commercial catfish producer must have purchased catfish feed in the period from twelve (12) months immediately preceding the date of the referendum to not less than thirty (30) calendar days immediately preceding the date of the referendum.
  3. The Secretary of the Department of Finance and Administration shall be reimbursed from funds collected for the costs of holding referenda.

History. Acts 1999, No. 790, § 7; 2019, No. 910, § 3266.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (c).

2-9-107. Election vote for levy of the assessment.

    1. Within a reasonable time after July 30, 1999, the Arkansas Catfish Promotion Board shall cause an election to be held on the question of the levy of an assessment on the sale of catfish feed within the State of Arkansas to commercial catfish producers at a rate determined by the board, such rate of assessment not to exceed five dollars ($5.00) per ton of catfish feed sold.
    2. If a majority of the commercial catfish producers voting at the election vote for the levy of the assessment, the assessment shall be applicable to all sales of catfish feed made on and after a date specified by the board, which date shall not be later than ninety (90) calendar days after certification of the results of the election.
    3. The assessment shall be a continuing levy until either terminated by the board or until another election is held at which a majority of the commercial catfish producers voting at an election vote against the levy. The rate of assessment approved at an election shall not be increased except under the majority vote of the commercial catfish producers voting at a subsequent election.
    1. When petitions containing the signatures of thirty percent (30%) of the commercial catfish producers in the state, as determined by the latest available agricultural census data, are filed with the board requesting that the question of continuing the assessment be submitted to a vote of the catfish producers, the board shall cause an election to be held within ninety (90) calendar days after the filing of the petitions, to be conducted in the same manner as the initial election held on the question of the levy of the assessment.
    2. If a majority of the commercial catfish producers voting at the election vote against the levy of the assessment, the assessment shall not be levied as of the date ten (10) calendar days after the date of the election. The levy may be reapproved, in the same manner as the initial election and subject to the same vote requirements, at an election called by the board not earlier than twelve (12) months after the date of the previous election suspending the levy of the assessment.
    1. The assessment imposed and levied by this section shall be collected by the Secretary of the Department of Finance and Administration from each seller of catfish feed, who shall add the assessment to the purchase price of catfish feed sold in this state to commercial catfish producers.
    2. Each seller of catfish feed, when remitting assessments collected to the secretary, may deduct not more than one percent (1%) of the gross amount of the assessments to cover the cost of compliance.

History. Acts 1999, No. 790, § 8; 2019, No. 910, § 3267.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (c)(1).

2-9-108. Budget.

  1. The Arkansas Catfish Promotion Board shall prepare an annual budget, a copy of which shall be maintained at the principal office of the board and shall be open for public inspection during business hours.
  2. The board shall be audited annually in accordance with generally accepted auditing procedures, and a copy of the audit shall be filed with the Legislative Joint Auditing Committee.

History. Acts 1999, No. 790, § 9.

2-9-109. Assessment records.

    1. Every person required to pay the assessment provided for in this chapter shall keep a complete and accurate record of all catfish feed handled by him or her.
    2. The records shall be in such form and contain other information as the Arkansas Catfish Promotion Board shall prescribe by rule.
    3. The records shall be preserved for a period of two (2) years and shall be offered for inspection at any time upon written demand by the Secretary of the Department of Finance and Administration or his or her authorized agent or representative.
    1. At such times as the secretary may require, every person required to pay the assessment provided for in this chapter shall submit reports or otherwise document any information deemed necessary for the efficient collection of the assessment imposed in this chapter.
    2. The secretary has the power to cause any authorized agent or representative to enter upon the premises of any person required to pay the assessment provided for in this chapter and examine or cause to be examined by the agent any books, papers, and records which deal in any way with the payment of the assessment or enforcement of the provisions of this chapter.

History. Acts 1999, No. 790, § 10; 2019, No. 315, § 6; 2019, No. 910, §§ 3268, 3269.

Amendments. The 2019 amendment by No. 315 deleted “or regulation” following “rule” in (a)(2).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(3); and substituted “secretary” for “director” in (b)(1) and (2).

2-9-110. Assessment refund.

  1. So long as the assessment on the sale of catfish feed continues to be levied as provided in this chapter, any catfish producer may request and receive a refund of such assessment, provided he or she makes a written application therefor with the Secretary of the Department of Finance and Administration within sixty (60) calendar days after the date of sale, supported by copies of sales slips from the seller of the catfish feed and a refund form approved by the Arkansas Catfish Promotion Board.
  2. The secretary shall create and approve a refund claim form.

History. Acts 1999, No. 790, § 11; 2019, No. 910, § 3270.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a); and substituted “secretary” for “director” in (b).

2-9-111. Penalty.

    1. Any seller who fails to file a report, collect an assessment, or remit any assessment when due shall pay a penalty not to exceed five percent (5%) of the amount of the assessment that should have been collected or remitted, plus an additional penalty not to exceed one percent (1%) of the amount of the assessment that should have been collected or remitted for each month of delay, or fraction of a month, after the first month the report was required to be filed or the assessment became due.
    2. The penalty shall be paid to the Secretary of the Department of Finance and Administration and shall be disposed of in the same manner as funds derived from the payment of an assessment as provided in this chapter.
  1. The secretary shall collect the penalties levied in this section, together with the delinquent assessment, by any or all of the following methods:
    1. Voluntary payment; or
    2. Legal proceedings instituted in a court of competent jurisdiction seeking any remedies available, including, but not limited to, injunctive relief to enjoin any seller owing the assessment or penalties from engaging in business as a seller of catfish feed until the amount of the assessment due and all penalties are paid.
  2. Any person required to pay the assessment provided for in this chapter who refuses to allow full inspection of the premises or any book, record, or other document relating to the liability of the person for the assessment imposed or who shall hinder or in any way delay or prevent the inspection shall be guilty of a violation punishable by a fine not exceeding five hundred dollars ($500).

History. Acts 1999, No. 790, § 3; 2005, No. 1994, § 5; 2019, No. 910, § 3271.

Amendments. The 2005 amendment substituted “or” for “and” in (b)(1); and substituted “violation” for “misdemeanor” in (c).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(2); and substituted “secretary” for “director” in the introductory language of (b).

2-9-112. Arkansas Catfish Promotion Fund.

  1. There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State, the Arkansas Catfish Promotion Fund.
  2. The fund shall consist of those special revenues from assessments as specified in this chapter, there to be used in such manner as the Arkansas Catfish Promotion Board deems appropriate for Arkansas catfish promotion and research and for the operation and maintenance of the board office and payment of expenses of the board members as set out in § 2-9-103.

History. Acts 1999, No. 790, § 12.

Chapter 10 Arkansas Milk Stabilization Board

Subchapter 1 — Arkansas Milk Stabilization Board Act

Effective Dates. Acts 2007, No. 754, § 2: Apr. 2, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the dairy industry in this state is a valuable industry providing a product that is necessary for good nutrition; that the ability of dairy farms to provide a stable supply of pure and wholesome milk is a matter of great importance to the health and welfare of the people of this state; that the recent, dramatic price fluctuations threaten the viability and stability of the dairy industry of this state; that in order to safeguard this industry, a milk stabilization board must immediately be created and a viable plan for the dairy industry submitted to the Legislative Council for its approval. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-10-101. Title.

This subchapter shall be known and may be cited as the “Arkansas Milk Stabilization Board Act”.

History. Acts 2007, No. 754, § 1.

2-10-102. Findings — Purposes.

  1. The General Assembly finds that:
    1. The dairy industry is an essential agricultural activity of the State of Arkansas;
    2. Dairy farms, associated suppliers, marketers, processors, and retailers are an integral component of the state's economy;
    3. The ability of a dairy farm, associated supplier, marketer, processor, and retailer to provide a stable, local supply of pure and wholesome milk is a matter of great importance to the health and welfare of the people of this state;
    4. Dairy farms are an integral part of the state's rural communities;
    5. Dairy farms preserve land for agricultural purposes and provide needed economic stimuli for rural communities;
    6. Assurance of a fair and equitable price for dairy farmers ensures their ability to provide milk to the market and the vitality of the state's dairy industry and all the associated benefits of the industry;
    7. Recent, dramatic price fluctuations, with a pronounced downward trend, threaten the viability and stability of the dairy industry of this state; and
    8. The federal order system, implemented by the Agricultural Marketing Agreement Act of 1937, 7 U.S.C. § 601 et seq., established only minimum prices paid to producers for raw milk, without preempting the power of the state to regulate milk prices above the minimum levels so established.
  2. The purposes of this subchapter are to:
    1. Take all necessary steps to assure the continued viability of dairy farming in the state;
    2. Assure consumers of an adequate, local supply of pure and wholesome milk;
    3. Neither displace the federal order system nor encourage the merging of federal orders; and
    4. Encourage increased production to meet the state's need for quality milk.

History. Acts 2007, No. 754, § 1.

2-10-103. Arkansas Milk Stabilization Board.

  1. There is created no later than July 1, 2007, the Arkansas Milk Stabilization Board, to be composed of five (5) members appointed by the Governor as follows:
    1. Two (2) members who are actively and principally engaged in dairy farming in this state;
    2. One (1) member who is an Arkansas consumer;
    3. One (1) member who is an Arkansas milk processor; and
    4. One (1) member who is an Arkansas retailer.
  2. Each member appointed to the board shall be appointed for a term of five (5) years except that the initial members of the board shall be appointed for terms that result in:
    1. One (1) member's term expiring after one (1) year;
    2. One (1) member's term expiring after two (2) years;
    3. One (1) member's term expiring after three (3) years;
    4. One (1) member's term expiring after four (4) years; and
    5. One (1) member's term expiring after five (5) years.
  3. Members of the board shall draw lots to determine the length of the initial term.
    1. Not less than thirty (30) calendar days before the expiration of the terms of the members of the board under subdivisions (a)(1) and (a)(4) of this section, interested parties shall submit to the Governor the names of nominees for the positions to be filled, and the Governor shall appoint the new members from each list of nominees.
    2. If no lists are submitted, the appointments shall be at the discretion of the Governor.
    3. Each member selected for the board shall serve for a term of five (5) years except as provided in subsection (b) of this section and until his or her successor is selected as provided in this subsection.
    4. A member of the board may be removed by a majority vote of the remaining board members for:
      1. Conviction of a felony;
      2. Failing to attend three (3) consecutive meetings; or
      3. No longer meeting the qualifications for his or her initial appointment.
  4. Upon a vacancy of a member of the board, the Governor shall make a new appointment within thirty (30) days.
  5. Members of the board shall organize immediately after their appointment and shall elect a chair, a vice chair, and a secretary-treasurer from the membership of the board, whose duties shall be those customarily exercised by those officers or specifically designated by the board.
    1. Meetings of the board shall be called by the chair or by four (4) members of the board.
    2. Four (4) members of the board shall constitute a quorum for the transaction of business of the board.
  6. The members of the board shall receive no salary or other compensation for their services except that they may receive expense reimbursement in accordance with § 25-16-901 et seq. for attending meetings of the board.
  7. The Secretary of the Department of Agriculture shall assist the board when necessary by providing resources and guidance.

History. Acts 2007, No. 754, § 1; 2019, No. 910, § 11.

Amendments. The 2019 amendment, in (i), substituted “Department of Agriculture” for “Arkansas Agriculture Department” and deleted “and the Deputy Director of the Arkansas Livestock and Poultry Commission” preceding “shall assist”.

2-10-104. Powers and duties of the Arkansas Milk Stabilization Board.

  1. The Arkansas Milk Stabilization Board shall:
    1. Administer this subchapter;
    2. Research other states to determine how those states support their dairy farmers;
    3. Investigate methods of milk production, dairy pricing, and support of the dairy industry;
    4. Create a plan to assist Arkansas dairy farmers that would be equitable to all parties in the state dairy industry and withstand legal challenges;
    5. [Repealed.]
    6. Provide a forty-five-day period for public comment on the proposed plan provided in subdivision (a)(5) of this section;
    7. Create the final plan for submission to the Legislative Council following the public comment period; and
    8. Promulgate rules the board considers necessary or desirable to implement the final plan determined in subdivision (a)(7) of this section.
  2. The board shall submit its final plan as determined under subdivision (a)(7) of this section and rules as determined under subdivision (a)(8) of this section to the Legislative Council for review no later than March 1, 2008.
    1. Once reviewed by the Legislative Council, the Department of Agriculture shall implement the plan.
    2. The board shall monitor progress and success of the plan.
  3. The board shall have jurisdiction over milk and milk products marketed in the State of Arkansas.

History. Acts 2007, No. 754, § 1; 2019, No. 910, §§ 12, 13.

Amendments. The 2019 amendment repealed (a)(5); and substituted “Department of Agriculture” for “Arkansas Agriculture Department” in (c)(1).

Subchapter 2 — Dairy Stabilization Grant Act

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-10-201. Findings — Intent.

  1. The General Assembly finds that:
    1. The State of Arkansas is at risk of losing its dairy industry if immediate legislative action is not taken to reduce the sharp decline in the number of its dairy farms; and
    2. The loss of the dairy industry in Arkansas will result not only in the demise of dairy farming but also in significantly higher milk cost to Arkansas's citizens, including its children, and a loss of jobs in the processing of milk products.
  2. The intent of this subchapter is to:
    1. Prevent harm to Arkansas's consumers and dairy industry;
    2. Establish the Dairy Stabilization Program, which will safeguard the interests of dairy producers in this state;
    3. Ensure that dairy producers receive fair market breakeven prices;
    4. Provide consumers a continuous and affordable supply of Arkansas-produced fluid milk and other dairy products;
    5. Reverse the loss of dairy farms in the state;
    6. Significantly curtail the increase in milk prices to the consumer by helping to ensure in-state production; and
    7. Maintain and potentially increase jobs in the processing of milk products by stabilizing prices to dairy farmers.

History. Acts 2009, No. 968, § 1.

2-10-202. Definition.

As used in this subchapter, “milk producer” means a person or entity that operates a bovine dairy farm that possesses a valid permit signed by the administrator of the Arkansas Grade “A” Milk Program.

History. Acts 2009, No. 968, § 1.

2-10-203. Dairy Stabilization Grant.

  1. The Dairy Stabilization Grant is created.
      1. If funds are available, the Secretary of the Department of Agriculture shall calculate monthly the difference between the average monthly blend price of milk received by Arkansas milk producers as estimated by the secretary and seventy percent (70%) of the average monthly cost of producing milk in Missouri and Tennessee as estimated by the United States Department of Agriculture.
      2. If the average monthly blend price of milk received by Arkansas milk producers is lower than seventy percent (70%) of the calculated average cost of producing milk in Missouri and Tennessee, the milk producer is eligible for a monthly Dairy Stabilization Grant in the amount of the difference, which will be paid quarterly. The secretary shall pay the milk producer by the fifteenth day of the month following the end of the quarter.
    1. The secretary shall not pay a milk producer more than five dollars ($5.00) per hundred weight of milk per month under subdivision (b)(1) of this section.
  2. Grants received by a milk producer under this section shall not exceed an annual average of two dollars ($2.00) per hundred weight of milk.
  3. Grants authorized by the secretary shall be made to the milk producer from moneys appropriated by the General Assembly for that purpose.

History. Acts 2009, No. 968, § 1; 2019, No. 910, § 14.

Amendments. The 2019 amendment substituted “Department of Agriculture” for “Arkansas Agriculture Department” in (b)(1)(A).

2-10-204. Milk production and quality incentives.

  1. If funds are available, as an incentive to continue milk production and to improve milk quality, the Secretary of the Department of Agriculture may pay a milk producer the following incentive payments:
      1. Fifty cents (50¢) per hundred weight of milk for each hundred weight of milk produced above the milk producer's average annual milk production.
      2. A milk producer's average annual milk production specified under subdivision (a)(1)(A) of this section shall be calculated over the two (2) years preceding the year of disbursement; and
    1. Fifty cents (50¢) per hundred weight of milk if the milk contains a somatic cell count of less than four hundred thousand (400,000).
  2. A milk producer that begins milk production after July 31, 2009, qualifies for payments under subsection (a) of this section after the completion of one (1) continuous year of milk production in Arkansas.
  3. Annual payments to a milk producer under this section shall not exceed fifty thousand dollars ($50,000).
  4. If funds are available, the secretary shall pay the annual production and quality incentive payments to the eligible milk producers by January 15 of the following year.

History. Acts 2009, No. 968, § 1; 2011, No. 776, § 1; 2019, No. 910, § 15.

Amendments. The 2011 amendment substituted “a somatic cell count of less than four hundred thousand (400,000)” for “less than four-hundred-thousand somatic cell count” in (a)(2).

The 2019 amendment substituted “Department of Agriculture” for “Arkansas Agriculture Department” in the introductory language of (a).

2-10-205. Rules.

The Secretary of the Department of Finance and Administration and the Secretary of the Department of Agriculture shall adopt rules to implement this subchapter.

History. Acts 2009, No. 968, § 1; 2019, No. 910, § 16.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” and “Department of Agriculture” for “Arkansas Agriculture Department”.

Chapter 11 Agritourism Act

2-11-101. Title.

This chapter shall be known and may be cited as the “Agritourism Act”.

History. Acts 2011, No. 1024, § 1.

2-11-102. Legislative intent — Construction — Purpose.

  1. It is the intent of this chapter to:
    1. Promote rural tourism and rural economic development by encouraging owners or operators of farms, ranches, and other rural land or attractions, including historic, cultural, and natural attractions, to invite members of the public to view, observe, and participate in the operations and attractions for educational, entertainment, or recreational purposes; and
    2. Encourage agritourism activities by limiting civil liability of those engaged in agritourism or providing the activities of agritourism.
  2. This chapter shall be liberally construed to carry out the purposes described in subsection (a) of this section.

History. Acts 2011, No. 1024, § 1.

2-11-103. Definitions.

As used in this chapter:

  1. “Agribusiness operation” means an agricultural, horticultural, viticultural, forestry, dairy, livestock, poultry, bee, or any other farm, ranch, plantation, or range business operation;
    1. “Agritourism activity” means an interactive or passive activity carried out with or without payment to an agritourism activity operator on a farm, ranch, or agribusiness operation related to agriculture, food production, historic traditions, or nature-watching conducted by an agritourism activity operator for the education, entertainment, or recreation of participants.
    2. “Agritourism activity” includes without limitation:
      1. A farming or ranching activity;
      2. The viewing of historic, cultural, or natural attractions;
      3. A harvest-your-own activity;
      4. Nature-watching; and
      5. An activity involving an animal exhibition at an agricultural fair.
    3. “Agritourism activity” does not include:
      1. A roadside fruit and vegetable stand; or
      2. An operation exclusively devoted to the sale of merchandise or food at retail;
  2. “Agritourism activity operator” means an individual or entity that provides the facilities and equipment necessary to participate in an agritourism activity;
  3. “Inherent risk” means dangers or conditions that are an integral part of an agritourism activity, including without limitation:
    1. The propensity of a wild or domestic animal to behave in ways that may result in injury, harm, or death to persons on or around the wild or domestic animal;
    2. Hazards such as surface and subsurface conditions;
    3. Natural conditions of land, vegetation, and waters;
    4. Ordinary dangers of structures or equipment used in farming or ranching operations; and
    5. The potential of a participant to act in a negligent way that may contribute to injury to the participant or others, whether failing to follow safety procedures or failing to act with reasonable caution while engaging in the agritourism activity; and
  4. “Participant” is defined as a person, other than the agritourism activity operator, who engages in an agritourism activity.

History. Acts 2011, No. 1024, § 1.

2-11-104. Assumption of risk by participant.

Except as provided in § 2-11-105, a participant assumes the inherent risk of an agritourism activity by engaging in the agritourism activity.

History. Acts 2011, No. 1024, § 1.

2-11-105. Liability of agritourism activity operator.

This chapter shall not prevent or limit the liability of an agritourism activity operator if the agritourism activity operator or an agent of the agritourism activity operator:

  1. Commits an act or omission of gross negligence concerning the safety of a participant that proximately causes injury, damage, or death to the participant;
  2. Has actual knowledge of a dangerous condition on the land, facilities, or equipment used in the activity or the dangerous propensity of a particular animal used in the activity that proximately causes injury, damage, or death to the participant and does not make the danger known to the participant that proximately causes injury, damage, or death to the participant;
  3. Intentionally injures a participant; or
  4. Commits other acts, errors, or omissions that constitute willful or wanton misconduct, gross negligence, or criminal conduct that proximately causes injury, damage, or death.

History. Acts 2011, No. 1024, § 1.

2-11-106. Limitation of liability.

  1. An agritourism activity operator or participant is not liable for damages arising from the personal injury or death of a participant if:
    1. The injury or death results from an inherent risk; and
    2. The warning contained in § 2-11-107 is posted.
  2. The limitation of liability provided by this section is in addition to any other limitation of liability provided by law.

History. Acts 2011, No. 1024, § 1; 2013, No. 1122, § 1.

Amendments. The 2013 amendment substituted “of” for “on” in the introductory language.

2-11-107. Warning required.

  1. At each agritourism activity, the agritourism activity operator shall post and maintain signage in a clearly visible location at or near the main entrance to the agritourism activity and in black letters at least one inch (1") in height containing the following warning:
  2. The agritourism activity operator shall include, in clearly visible print, the warning contained in subsection (a) of this section in a written contract between the agritourism activity operator and each participant.
  3. At each agritourism activity, the agritourism operator shall post and maintain signage of a specific or known hazard in the particular area on or surrounding the agritourism activity.

“WARNING — Under Arkansas law, an agritourism activity operator is not liable for the injury or death of a participant in an agritourism activity resulting from the inherent risk of agritourism activities. Inherent risks include without limitation the risk of animals, weather, land conditions, and the potential for you as a participant to act in a negligent way that may contribute to your own injury or death. You are assuming the risk of participating in this agritourism activity.”

History. Acts 2011, No. 1024, § 1.

Chapters 12-14

[Reserved.]

Subtitle 2. Agronomy

Chapter 15 General Provisions

Subchapter 1 — Arkansas Crop and Research Facility Protection Act

2-15-101. Arkansas Crop and Research Facilities Protection Act.

  1. This section shall be known and may be cited as the “Arkansas Crop and Research Facilities Protection Act”.
    1. Any person or entity who willfully and knowingly damages or destroys any field crop product that is grown for personal or commercial purposes or for testing or research purposes in the context of a product development program in conjunction or coordination with a private research facility or a university or any federal, state, or local government agency shall be liable for twice the value of the crop damaged or destroyed.
    2. In awarding damages under this section, the courts shall consider:
      1. The market value of the crop before damage or destruction; and
      2. Production, research, testing, replacement, and crop development costs directly related to the crop that has been damaged or destroyed as part of the value of the crop.
    3. Damages available under this section shall be limited to:
      1. Twice the market value of the crop before damage or destruction; plus
      2. Twice the actual damages involving production, research, testing, replacement, and crop development costs directly related to the crop that has been damaged or destroyed.
  2. This section shall not apply to any persons or entities when performing construction, land improvements, or excavation work in or upon any public right-of-way, public easement, or utility easement or who in good faith believe they are in or upon the right-of-way or easement.

History. Acts 2001, No. 1025, §§ 1-3.

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2001 Arkansas General Assembly, Agricultural Law, 24 U. Ark. Little Rock L. Rev. 403.

Subchapter 2 — Arkansas Rice Certification Act

Effective Dates. Acts 2005, No. 1238, § 3: Aug. 1, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that rices identified as having characteristics of commercial impact may pose an economic threat to the well-being of the people of this state; that the growing, harvesting, and selling of rice is an important part of this state's economy; and that it is necessary for this act to become effective on August 1, 2005, to avoid any additional detriment to this state. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on August 1, 2005.”

Acts 2009, No. 275, § 2: Mar. 3, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Arkansas Rice Certification Act is due to expire on July 1, 2009; that the rice industry is an essential component of the economy of this state; and that the continuation of the Arkansas Rice Certification Act is necessary for the protection of the rice crop in the State of Arkansas. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

2-15-201. Title.

This subchapter shall be known and may be cited as the “Arkansas Rice Certification Act”.

History. Acts 2005, No. 1238, § 1.

A.C.R.C. Notes. Acts 2009, No. 275, § 1, provided: “Acts 2005, No. 1238 § 2, which states ‘This act shall expire on July 1, 2009’, is hereby repealed.”

2-15-202. Definitions.

As used in this subchapter:

  1. “Characteristics of commercial impact” means characteristics that may adversely affect the marketability of rice in the event of commingling with any other rice and includes, but is not limited to, those characteristics:
    1. That cannot be identified without the aid of specialized equipment or testing;
    2. That create a significant economic impact in their removal from commingled rice; and
    3. Whose removal from commingled rice is not feasible; and
  2. “Person” includes any individual, partnership, limited liability company, limited liability partnership, corporation, firm, company, or any other entity doing business in Arkansas.

History. Acts 2005, No. 1238, § 1.

A.C.R.C. Notes. Acts 2009, No. 275, § 1, provided: “Acts 2005, No. 1238 § 2, which states ‘This act shall expire on July 1, 2009’, is hereby repealed.”

2-15-203. Prohibition of rice with characteristics of commercial impact.

No person may introduce, sell, plant, produce, harvest, transport, store, process, or otherwise handle rice identified as having characteristics of commercial impact, except in compliance with this subchapter and the rules adopted by the State Plant Board.

History. Acts 2005, No. 1238, § 1.

A.C.R.C. Notes. Acts 2009, No. 275, § 1, provided: “Acts 2005, No. 1238 § 2, which states ‘This act shall expire on July 1, 2009’, is hereby repealed.”

2-15-204. Administration — Duties of the State Plant Board.

  1. The State Plant Board shall:
    1. Administer and enforce this subchapter;
    2. Promulgate rules to implement the purposes and requirements of this subchapter, including rules that will establish a penalty matrix for violations of this subchapter and the rules promulgated under this subchapter; and
    3. Receive and investigate complaints regarding alleged violations of this subchapter and rules promulgated by the board.
  2. The board may:
    1. Prohibit or place restrictions on the selling, planting, producing, harvesting, transporting, storing, processing, or other handling of rice identified as having characteristics of commercial impact; and
    2. Charge a reasonable fee to cover the cost of inspections and other activities permitted under this subchapter.
  3. All moneys received by the board under this subchapter and the rules adopted by the board shall be deposited into the Plant Board Fund to be used for carrying out the provisions of this subchapter.

History. Acts 2005, No. 1238, § 1.

A.C.R.C. Notes. Acts 2009, No. 275, § 1, provided: “Acts 2005, No. 1238 § 2, which states ‘This act shall expire on July 1, 2009’, is hereby repealed.”

Cross References. Plant Board Fund, § 19-6-408.

2-15-205. Scientific Review Committee.

  1. The State Plant Board may appoint a Scientific Review Committee.
  2. The committee shall review and make recommendations to the board concerning all matters contained in this subchapter, including:
    1. Identifying rice that has characteristics of commercial impact;
    2. Reviewing rice identified as having characteristics of commercial impact upon receipt of a petition from the purveyor of the rice;
    3. Recommending rules establishing terms and conditions for planting, producing, harvesting, selling, transporting, processing, storing, or otherwise handling rice identified under subdivision (b)(1) of this section; and
    4. Reviewing the efficacy of terms, conditions, and identity preservation programs imposed on the planting, producing, harvesting, transporting, drying, storing, or other handling of rice identified under subdivision (b)(1) of this section, using the most current industry standards and generally accepted scientific principles.

History. Acts 2005, No. 1238, § 1.

A.C.R.C. Notes. Acts 2009, No. 275, § 1, provided: “Acts 2005, No. 1238 § 2, which states ‘This act shall expire on July 1, 2009’, is hereby repealed.”

2-15-206. Violations — Notice.

  1. Upon receiving a complaint alleging that a person has violated this subchapter or a rule of the State Plant Board, the board shall provide notice to the person and an opportunity for the person to respond to the complaint.
  2. If the board determines that the complaint warrants further action, the board shall notify the person in writing of the board's decision.
  3. The board may seek injunctive relief, commence a civil action against the person, or seek other remedies provided by law.

History. Acts 2005, No. 1238, § 1.

A.C.R.C. Notes. Acts 2009, No. 275, § 1, provided: “Acts 2005, No. 1238 § 2, which states ‘This act shall expire on July 1, 2009’, is hereby repealed.”

2-15-207. Exemptions.

The provisions of this subchapter shall not apply to research conducted by a federal, state, or private entity, including an institution of higher education, which conforms to and is in compliance with all state and federal laws and rules for laboratory management practices.

History. Acts 2005, No. 1238, § 1.

A.C.R.C. Notes. Acts 2009, No. 275, § 1, provided: “Acts 2005, No. 1238 § 2, which states ‘This act shall expire on July 1, 2009’, is hereby repealed.”

2-15-208. Penalties.

    1. The State Plant Board may impose a civil penalty for violation of § 2-15-203.
    2. The penalty shall not exceed one hundred thousand dollars ($100,000).
    3. Each day of a continuing violation of § 2-15-203 is a separate violation.
  1. The board may bring an action in any court of competent jurisdiction to collect a penalty under this section and may recover all attorney's fees, costs, and expenses incurred by the board in bringing the action.

History. Acts 2005, No. 1238, § 1.

A.C.R.C. Notes. Acts 2009, No. 275, § 1, provided: “Acts 2005, No. 1238 § 2, which states ‘This act shall expire on July 1, 2009’, is hereby repealed.”

Subchapter 3 — Grain, Soybean, and Peanut Owner's Lien Act

2-15-301. Title.

This subchapter shall be known and may be cited as the “Grain, Soybean, and Peanut Owner's Lien Act”.

History. Acts 2015, No. 1082, § 1.

2-15-302. Definitions.

As used in this subchapter:

  1. “Affiliate” means a person that:
    1. Is directly or indirectly controlled by a first purchaser; or
    2. Directly or indirectly controls a first purchaser;
  2. “Agreement to sell” means an enforceable oral or written agreement by which a grain, soybean, or peanut owner, either directly or through a sales agent, agrees to sell grain, soybeans, or peanuts to a first purchaser;
  3. “Control” or “controlled by” means the direct or indirect possession of the power to direct or cause the direction of the management and policies of a person through ownership, by contract, or otherwise;
  4. “First purchaser” means the first person that purchases grain, soybeans, or peanuts, either directly or indirectly through a sales agent, under an agreement to sell;
  5. “Grain, soybean, or peanut owner” means a person owning an interest in grain, soybeans, or peanuts before the acquisition of the grain, soybeans, or peanuts by a first purchaser;
  6. “Owner's lender” means a person that has a valid mortgage lien or security interest in a grain, soybean, or peanut owner's grain, soybeans, or peanuts at the time the grain, soybeans, or peanuts are delivered to the first purchaser;
  7. “Owner's lien” means a lien granted under this subchapter;
    1. “Permitted lien” means the following liens or security interests:
      1. A mortgage lien or security interest granted by a first purchaser that:
        1. Secures payment under a written instrument of indebtedness signed by the first purchaser and accepted in writing by the payee before July 22, 2015; and
        2. Has a principal amount and a fixed maturity stated in the mortgage lien or security interest; and
      2. A validly perfected and enforceable lien created by statute in relation to grain, soybeans, or peanuts purchased under an agreement to sell that secures payment of indebtedness incurred by the first purchaser before July 22, 2015.
    2. “Permitted lien” does not include a mortgage lien or security interest that:
      1. Secures payment under a written instrument of indebtedness that is modified, amended, or restated from or after July 22, 2015, by a modification, amendment, or restatement that increases the principal amount that is owed on July 22, 2015;
      2. Secures payment under a written instrument of indebtedness that is modified, amended, or restated from or after July 22, 2015, by a modification, amendment, or restatement that extends the stated maturity of the written instrument of indebtedness that is in effect on July 22, 2015; or
      3. Is not validly perfected with a first priority against the claims of all persons under applicable law other than a person holding a statutory or regulatory lien as to which first priority is granted by statute or rule;
  8. “Person” means an individual or business entity, including without limitation an executor, administrator, estate, agent, trust, trustee, institution, receiver, business trust, firm, corporation, partnership, limited liability company, cooperative, joint venture, governmental entity or agency, association, and any other legal entity;
  9. “Proceeds” means:
    1. A right or amount paid or to be paid in consideration of or as a consequence of the sale of grain, soybeans, or peanuts, including without limitation cash proceeds, accounts, chattel paper, instruments, and payment intangibles;
    2. A by-product from the processing of grain, soybeans, or peanuts; and
    3. A right or amount paid or to be paid in consideration of or as a consequence of the sale of a by-product from the processing of grain, soybeans, or peanuts;
  10. “Purchaser” means a person that:
    1. Is not an affiliate of a first purchaser; and
    2. Takes, receives, or purchases grain, soybeans, or peanuts from a first purchaser;
  11. “Sales agent” means a person that is authorized to sell grain, soybeans, or peanuts on behalf of or for the benefit of another person; and
  12. “Sales price” means the amount a first purchaser agrees to pay a grain, soybean, or peanut owner or a sales agent under an agreement to sell.

History. Acts 2015, No. 1082, § 1; 2019, No. 315, § 7.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (8)(B)(iii).

2-15-303. Grain, soybeans, or peanuts lien.

    1. To secure the obligations of a first purchaser to pay the sales price, a grain, soybean, or peanut owner is granted a lien in all grain, soybeans, or peanuts sold by the grain, soybean, or peanut owner for any unpaid portion of the sales price for the grain, soybeans, or peanuts.
    2. The lien granted under this section is granted and shall exist as part of and incident to the ownership of grain, soybeans, or peanuts.
  1. An owner's lien:
    1. Exists in and attaches immediately to all grain, soybeans, or peanuts on July 22, 2015; and
    2. Continues uninterrupted and without lapse:
      1. In all grain, soybeans, or peanuts upon and after the sale of the grain, soybeans, or peanuts; and
      2. In and to all proceeds.
    1. An owner's lien exists until the grain, soybean, or peanut owner or the sales agent entitled to receive the sales price has received the full amount of the sales price.
    2. A security interest or mortgage lien of an owner's lender attaches to the grain, soybean, or peanut owner's right to an owner's lien in grain, soybeans, or peanuts or in proceeds from the sale of the grain, soybeans, or peanuts.
    3. An owner's lender does not waive its security interest or mortgage lien or right in an owner's lien by approving or authorizing the grain, soybean, or peanut owner to sell the grain, soybeans, or peanuts under a sales agreement.
    1. The validity of an owner's lien is not dependent on possession of the grain, soybeans, or peanuts by a grain, soybean, or peanut owner or sales agent.
    2. An owner's lien is not void or expired by reason of a change or transfer of the actual or constructive possession of or title to the grain, soybeans, or peanuts from the grain, soybean, or peanut owner or sales agent to a first purchaser or subsequent purchaser.

History. Acts 2015, No. 1082, § 1.

2-15-304. Perfection of grain, soybean, or peanut lien.

An owner's lien is perfected automatically from July 22, 2015 or the date a sales agreement is executed after July 22, 2015 without the need to file a financing statement or other type of documentation.

History. Acts 2015, No. 1082, § 1.

2-15-305. Commingled grain, soybeans, or peanuts — Priority.

  1. If grain, soybeans, or peanuts subject to an owner's lien are commingled with other grain, soybeans, or peanuts in a manner that the identity of the specific grain, soybeans, or peanuts subject to the owner's lien cannot be determined by reasonable means, the owner's lien continues without interruption into and attaches to the commingled grain, soybeans, or peanuts and is perfected automatically as of the date of its original perfection but only as to the percentage of the commingled grain, soybeans, or peanuts equal to the amount of grain, soybeans, or peanuts to which the owner's lien originally attached.
  2. An owner's lien in commingled grain, soybeans, or peanuts under subsection (a) of this section has priority over any security interest or other lien that is not an owner's lien or permitted lien regardless of whether the security interest or other lien has been properly perfected.
  3. If more than one (1) owner's lien attaches to commingled grain, soybeans, or peanuts, the owners' liens rank equally in the proportion that the respective sales prices secured by each owner's lien bear as a percentage of the total of the sales prices secured by all owners' liens applicable at the time the grain, soybeans, or peanuts were commingled.

History. Acts 2015, No. 1082, § 1.

2-15-306. Transfer of lien — Priority.

    1. A purchaser or sales agent takes free of an owner's lien otherwise applicable to the grain, soybeans, or peanuts purchased and is relieved of any obligations created under § 2-15-303 if the purchaser or sales agent pays the full amount of required consideration for the grain, soybeans, or peanuts under a good faith, noncollusive agreement to purchase the grain, soybeans, or peanuts.
    2. If a purchaser or sales agent pays the full amount of consideration under subdivision (a)(1) of this section, the owner's lien transfers to the proceeds paid by the purchaser or sales agent.
  1. An owner's lien shall continue uninterrupted in the proceeds paid to or otherwise due the first purchaser.
  2. Except as specifically provided in this section, an owner's lien has priority over the rights of a purchaser or sales agent.

History. Acts 2015, No. 1082, § 1.

2-15-307. Lien priority generally.

Except for a permitted lien, an owner's lien takes priority over any other lien regardless of whether the lien arises by contract, law, equity, or otherwise.

History. Acts 2015, No. 1082, § 1.

2-15-308. Applicability.

  1. This subchapter does not affect the time at which legal title to grain, soybeans, or peanuts may pass by agreement or operation of law subject to an owner's lien.
  2. This subchapter does not apply to:
    1. A farm-owned cooperative; or
    2. An entity licensed under the:
      1. United States Warehouse Act, 7 U.S.C. § 241 et seq.; or
      2. Arkansas Public Grain Warehouse Law, § 2-17-201 et seq.

History. Acts 2015, No. 1082, § 1.

2-15-309. Waiver, relinquishment, or release of lien prohibited.

    1. A grain, soybean, or peanut owner shall not be required as a condition or term of an agreement to sell or otherwise to:
      1. Waive, relinquish, or release an owner's lien or any rights under this subchapter other than upon payment in full of the sales price; or
      2. Agree to a provision that would apply the law of a state other than the State of Arkansas with respect to the rights granted under this subchapter.
    2. A waiver, relinquishment, release, or provision that violates subdivision (a)(1) of this section is void as a matter of the public policy of this state.
  1. A grain, soybean, or peanut owner or a sales agent acting on behalf of a grain, soybean, or peanut owner may waive, relinquish, or release an owner's lien or any rights under this subchapter or agree to a provision that would apply the law of a state other than the State of Arkansas with respect to the rights granted under this subchapter if the first purchaser:
    1. Posts a letter of credit in a form and amount satisfactory to the grain, soybean, or peanut owner or sales agent; or
    2. Both:
      1. Executes a contract that is satisfactory to the grain, soybean, or peanut owner or sales agent to prepay or escrow the sales price under an agreement to sell that is satisfactory to the grain, soybean, or peanut owner; and
      2. Performs all of the first purchaser's obligations under the contract.

History. Acts 2015, No. 1082, § 1.

2-15-310. Lien expiration — Action on an owner's lien.

  1. An owner's lien expires one (1) year after the last day of the month following the date the sales price from the sale of grain, soybeans, or peanuts subject to the lien is required by law or contract to be paid to the grain, soybean, or peanut owner but only as to the particular grain, soybeans, or peanuts sold during the month unless an action to enforce the owner's lien is commenced in a court of competent jurisdiction during that time.
  2. If a sales agent advances the sales price for grain, soybeans, or peanuts to the grain, soybean, or peanut owner before the first purchaser pays the sales price in full to the grain, soybean, or peanut owner or sales agent, the sales agent shall assume and may enforce all rights of the grain, soybean, or peanut owner under this subchapter as to the grain, soybeans, or peanuts or the proceeds from the sale of the grain, soybeans, or peanuts.
    1. In addition to any other court of competent jurisdiction, an action to enforce an owner's lien may be commenced in the district court of the county in which the:
      1. Agreement to sell is executed;
      2. Sales price is to be paid;
      3. The grain, soybeans, or peanuts that have not been paid for are located; or
      4. Proceeds may be found.
    2. The commencement of one (1) or more of the following proceedings by or against a person claiming an interest in property subject to an owner's lien tolls the one-year period in which to commence an action to enforce the owner's lien under subsection (a) of this section for an additional period of ninety (90) days from the earlier of the final conclusion or dismissal of the proceedings or the date final relief is obtained from the applicable tribunal authorizing the commencement of the action:
      1. An action seeking to adjudicate the person as bankrupt or insolvent;
      2. An action seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of the person or the person's debts under any law relating to bankruptcy, insolvency, or reorganization or relief of debtors; or
      3. An action seeking the entry of an order for relief or the appointment of a receiver, trustee, or other similar official for the person or for a substantial part of the person's property.
  3. The prevailing party in an action to enforce this subchapter may recover costs and reasonable attorney's fees in any legal proceeding.
  4. This subchapter does not impair or affect the right of a grain, soybean, or peanut owner or a sales agent to maintain a personal action to recover the debt against a person liable for payment of the sales price or to exercise any other available rights and remedies.

History. Acts 2015, No. 1082, § 1.

2-15-311. Preference.

If this subchapter conflicts with other rights a grain, soybean, or peanut owner may have, the grain, soybean, or peanut owner's right to receive the sales price shall be given preference.

History. Acts 2015, No. 1082, § 1.

Subchapter 4 — Arkansas Industrial Hemp Act

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-15-401. Title.

This act shall be known and may be cited as the “Arkansas Industrial Hemp Act”.

History. Acts 2017, No. 981, § 1.

Meaning of “this act”. Acts 2017, No. 981, codified as §§ 2-15-4012-15-412, 19-6-301, 19-6-835.

2-15-402. Legislative intent.

This subchapter is intended to assist the state in moving to the forefront of industrial hemp production, development, and commercialization of hemp products in agribusiness, alternative fuel production, and other business sectors, both nationally and globally, and to the greatest extent possible.

History. Acts 2017, No. 981, § 1.

2-15-403. Definitions.

As used in this subchapter:

  1. “Agribusiness” means the processing of raw agricultural products, including without limitation timber and industrial hemp, or the performance of value-added functions with regard to raw agricultural products;
  2. “Certified seed” means industrial hemp seed that has been certified as having no more tetrahydrocannabinol concentration than that adopted by federal law under the Controlled Substances Act, 21 U.S.C. § 801 et seq.;
  3. “Grower” means a person licensed to grow industrial hemp by the State Plant Board;
  4. “Hemp product” means a product made from industrial hemp, including without limitation:
    1. Certified seed for cultivation if the seeds originate from industrial hemp varieties;
    2. Cloth;
    3. Cordage;
    4. Fiber;
    5. Food;
    6. Fuel;
    7. Paint;
    8. Paper;
    9. Particleboard;
    10. Plastics; and
    11. Seed, seed meal, and seed oil for consumption;
  5. “Industrial hemp” means all parts and varieties of the plant Cannabis sativa, cultivated or possessed by a licensed grower, whether growing or not, that contain a tetrahydrocannabinol concentration of no more than that adopted by federal law in the Controlled Substances Act, 21 U.S.C. § 801 et seq.;
  6. “Seed research” means research conducted to develop or recreate better strains of industrial hemp, particularly for the purposes of seed production; and
  7. “Tetrahydrocannabinol” means the natural or synthetic equivalents of the substances contained in the plant, or in the resinous extractives of, Cannabis sativa, or any synthetic substances, compounds, salts, or derivatives of the plant or chemicals and their isomers with similar chemical structure and pharmacological activity.

History. Acts 2017, No. 981, § 1.

2-15-404. State Plant Board — Research program.

    1. The State Plant Board may adopt rules to administer the industrial hemp research program and to license persons to grow industrial hemp under this subchapter.
    2. The board may include as part of its rules the establishment of industrial hemp testing criteria and protocols.
    1. The board shall promote research and development concerning industrial hemp and commercial markets for Arkansas industrial hemp and hemp products.
    2. The board may work in conjunction with the Division of Agriculture of the University of Arkansas and the University of Arkansas Cooperative Extension Service regarding industrial hemp research programs.
      1. The board may undertake research concerning industrial hemp production through the establishment and oversight of a ten-year industrial hemp research program.
      2. In conjunction with the Division of Agriculture of the University of Arkansas, the board may create a program consisting primarily of demonstration plots planted and cultivated in this state by growers licensed under this subchapter.
      3. The board may determine the location, and the total number and acreage, of each demonstration plot.
        1. In conducting research under this subchapter, higher tetrahydrocannabinol concentration varieties of industrial hemp may be grown to provide breeding strains to revitalize the production of industrial hemp.
        2. However, tetrahydrocannabinol levels shall not exceed three-tenths of one percent (0.3%).
    3. The board may seek permits or waivers from the United States Drug Enforcement Administration or the appropriate federal agency that are necessary for the advancement of the industrial hemp research program.
    4. In conjunction with the Division of Agriculture of the University of Arkansas, the board may:
      1. Oversee and analyze the growth of industrial hemp by selected and licensed growers for agronomy research and analysis of required soils, growing conditions, and harvest methods relating to the production of industrial hemp that may be suitable for various commercial hemp products, including without limitation industrial hemp seed, paper, clothing, and oils;
      2. Conduct seed research on various types of industrial hemp that are best suited to be grown in Arkansas, including without limitation:
        1. Creation of Arkansas hybrid types of industrial hemp;
        2. Industrial hemp seed availability; and
        3. In-the-ground variety trials and seed production;
      3. Establish a program to recognize certain industrial hemp seed as being Arkansas heritage hemp seed;
      4. Study the economic feasibility of developing an industrial hemp market in various types of industrial hemp that can be grown in the state;
      5. Report on the estimated value-added benefits, including environmental benefits, that Arkansas businesses could reap by having an industrial hemp market of Arkansas-grown industrial hemp varieties in the state;
      6. Study the agronomy research being conducted worldwide relating to industrial hemp varieties, production, and utilization;
      7. Research and promote Arkansas industrial hemp and hemp seed on the world market that can be grown on farms in the state; and
      8. Study the feasibility of attracting federal and private funding for the Arkansas industrial hemp research program.
    5. The board may:
      1. Coordinate with the Arkansas Energy Office of the Division of Environmental Quality to study the use of industrial hemp in new energy technologies, including without limitation:
        1. Evaluation of the use of industrial hemp to generate electricity, and to produce biofuels and other forms of energy resources;
        2. Growth of industrial hemp on reclaimed mine sites;
        3. Use of hemp seed oil in the production of fuels; and
        4. Assessment of the production costs, environmental issues, and costs and benefits involved with the use of industrial hemp for energy; and
      2. Promote awareness of the financial incentives that may be available to agribusiness and manufacturing companies that manufacture industrial hemp into hemp products to:
        1. Attract new businesses to the state;
        2. Create a commercial market for industrial hemp;
        3. Create new job opportunities for Arkansas residents; and
        4. Diversify the agricultural economy of the state.
    6. The research activities under this subchapter shall not:
        1. Subject the industrial hemp research program to criminal liability under the controlled substances laws of the state.
        2. The exemption from criminal liability under subdivision (b)(7)(A)(i) of this section is a limited exemption that shall be strictly construed and that shall not apply to an activity of the industrial hemp research program that is not expressly permitted under this subchapter; or
      1. Amend or repeal by implication a provision of the Uniform Controlled Substances Act, § 5-64-101 et seq.
    7. The board shall notify the Division of Arkansas State Police and each local law enforcement agency with jurisdiction of the duration, size, and location of all industrial hemp demonstration plots.
    8. The board may cooperatively seek funds from both public and private sources to implement the industrial hemp research program created in this subchapter.
    9. By December 31, 2018, and annually thereafter, the board shall report on the status and progress of the industrial hemp research program to the Governor and to the Department of Agriculture.
    10. The board may establish and collect fees to administer the industrial hemp research program.

History. Acts 2017, No. 981, § 1; 2019, No. 140, § 1; 2019, No. 910, §§ 2412-2414.

Amendments. The 2019 amendment by No. 140 added (b)(11).

The 2019 amendment by No. 910 substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in the introductory language of (b)(6)(A); substituted “Division of Arkansas State Police” for “Department of Arkansas State Police” in (b)(8); and substituted “Department of Agriculture” for “Arkansas Agriculture Department” in (b)(10).

2-15-405. Interagency cooperation.

  1. The Division of Agriculture of the University of Arkansas may provide research and development related services under this subchapter for the State Plant Board, including without limitation:
    1. Testing of industrial hemp;
    2. Processing of documents relating to the program of licensure;
    3. Financial accounting and recordkeeping, and other budgetary functions; and
    4. Meeting coordination and staffing.
    1. The Arkansas Economic Development Commission may work in conjunction with the board to promote:
      1. The development of industrial hemp production in the state; and
      2. The commercialization of hemp products in agribusiness, alternative fuel production, and other business sectors, to the greatest extent possible.
    2. The commission may promote the availability of financial incentives offered by state government for the processing and manufacture of industrial hemp into hemp products in the state, including without limitation incentives offered to interested parties both within and without this state.
  2. Administrative expenses under this section shall be paid from the Arkansas Industrial Hemp Program Fund.

History. Acts 2017, No. 981, § 1.

Cross References. Arkansas Industrial Hemp Program Fund, § 19-6-835.

2-15-406. State Plant Board — Reports.

The State Plant Board may report to the Department of Agriculture concerning industrial hemp policies and practices that may result in the proper legal growing, management, use, and marketing of the state's potential industrial hemp industry, including without limitation:

  1. Federal laws and regulatory constraints;
  2. The economic and financial feasibility of an industrial hemp market in Arkansas;
  3. Arkansas businesses that might use industrial hemp;
  4. Examination of research on industrial hemp production and use;
  5. The potential for globally marketing Arkansas industrial hemp;
  6. A feasibility study of private funding for the Arkansas industrial hemp research program;
  7. Enforcement concerns;
  8. Statutory and regulatory schemes for growing of industrial hemp by private producers; and
  9. Technical support and education about industrial hemp.

History. Acts 2017, No. 981, § 1; 2019, No. 910, § 17.

Amendments. The 2019 amendment substituted “Department of Agriculture” for “Governor and to the Arkansas Agriculture Department” following “may report to the” in the introductory language.

2-15-407. Federal regulations regarding industrial hemp.

  1. The State Plant Board shall adopt the federal rules and regulations that are currently enacted regarding industrial hemp as in effect on January 1, 2017.
  2. This subchapter does not authorize a person to violate any federal rules or regulations.
  3. If any part of this subchapter conflicts with a provision of federal law relating to industrial hemp, the federal provision shall control to the extent of the conflict.

History. Acts 2017, No. 981, § 1.

2-15-408. Industrial hemp licenses.

  1. The State Plant Board may establish a program of annual licensure to allow persons to grow industrial hemp in the state.
    1. The industrial hemp licensure program shall include the following forms of license:
        1. An industrial hemp research program grower license, to allow a person to grow industrial hemp in this state in a controlled fashion solely and exclusively as part of the industrial hemp research program overseen by the board.
        2. A license under subdivision (b)(1)(A)(i) of this section is subject to the receipt of necessary permissions, waivers, or other forms of authentication by the United States Drug Enforcement Administration or another appropriate federal agency under applicable federal laws relating to industrial hemp; and
        1. An industrial hemp grower license to allow a person to grow industrial hemp in this state.
        2. A license under subdivision (b)(1)(B)(i) of this section is subject to the authorization of legal industrial hemp growth and production in the United States under applicable federal laws relating to industrial hemp.
    2. A license issued under this section shall authorize industrial hemp propagation only on the land areas specified in the license.
    1. A person seeking an application to grow industrial hemp, whether as part of the industrial hemp research program or otherwise, shall apply to the board for the appropriate license on a form provided by the board.
    2. The board shall require the applicant to include on the form provided by the board under subdivision (c)(1) of this section the following information, including without limitation:
      1. The name and mailing address of the applicant;
      2. The legal description and global positioning coordinates of the production fields to be used to grow industrial hemp; and
        1. Written consent allowing the board, if a license is ultimately issued to the applicant, to enter onto the premises on which the industrial hemp is grown to conduct physical inspections of industrial hemp planted and grown by the applicant to ensure compliance with this subchapter and rules adopted under this subchapter.
        2. Unless a deficiency is found, the board shall make no more than two (2) physical inspections of the production fields of an industrial hemp licensee.
        3. Tetrahydrocannabinol levels shall be tested as provided in this subchapter.
  2. Each application shall be accompanied by a nonrefundable fee of fifty dollars ($50.00).
  3. The board shall establish a fee not to exceed two hundred dollars ($200) for an:
    1. Initial license; and
    2. Annual renewal license.
    1. For an industrial hemp research program grower licensee, the board may approve licenses for only those growers whose demonstration plots the board determines will advance the goals of the industrial hemp research program.
    2. The board shall base a determination under subdivision (f)(1) of this section on:
      1. Growing conditions;
      2. Location;
      3. Soil type;
      4. Various varieties of industrial hemp that may be suitable for various hemp products; and
      5. Other relevant factors.
  4. The board shall determine the number of acres to be planted under each license.
  5. A copy of or an electronic record of a license issued by the board under this section shall be forwarded immediately to the sheriff of the county in which the industrial hemp location is licensed.
  6. Records, data, and information filed in support of a license application is proprietary and subject to inspection only upon the order of a court of competent jurisdiction.
  7. At the expense of the license holder, the board shall:
    1. Monitor the industrial hemp grown by each license holder;
    2. Provide for random testing of the industrial hemp for compliance with tetrahydrocannabinol levels; and
    3. Provide for other oversight required by the board.

History. Acts 2017, No. 981, § 1.

2-15-409. License required — Records.

    1. A person shall obtain an industrial hemp grower license under this subchapter before planting or growing industrial hemp in this state.
    2. An industrial hemp grower license holder who has planted and grown industrial hemp in this state may sell the industrial hemp to a person engaged in agribusiness or other manufacturing for the purpose of research, processing, or manufacturing that industrial hemp into hemp products.
  1. An industrial hemp grower shall:
    1. Maintain records that reflect compliance with this subchapter and all other state laws regulating the planting and cultivation of industrial hemp;
    2. Retain all industrial hemp production records for at least three (3) years;
    3. Allow industrial hemp crops, throughout sowing, growing, and harvesting, to be inspected by and at the discretion of the State Plant Board or its agents;
    4. File with the board documentation indicating that the industrial hemp seeds planted were of a type and variety certified to have no more tetrahydrocannabinol concentration than that adopted in the federal Controlled Substances Act, 21 U.S.C. § 801 et seq.;
    5. Notify the board of the sale of industrial hemp grown under the license and the names and addresses of the persons to whom the industrial hemp was sold; and
    6. Provide the board with copies of each contract between the licensee and a person to whom industrial hemp was sold.
  2. A person licensed to grow industrial hemp under this subchapter may import and resell industrial hemp seed that has been certified as having no more tetrahydrocannabinol concentration than that adopted in the federal Controlled Substances Act, 21 U.S.C. § 801 et seq.

History. Acts 2017, No. 981, § 1.

2-15-410. Transportation of industrial hemp.

    1. Only an industrial hemp grower licensee or his or her designees or agents may transport industrial hemp off the premises of the licensee.
    2. When transporting industrial hemp off the premises of an industrial hemp grower licensee, the licensee or a designee or agent of the licensee shall carry the licensing documents from the State Plant Board, evidencing that the industrial hemp:
      1. Was grown by a licensee; and
      2. Is from certified seed.
  1. Industrial hemp that is found in this state at any location off the premises of an industrial hemp grower licensee is contraband and subject to seizure by any law enforcement officer, unless the person in possession of the industrial hemp has in his or her possession either:
    1. The proper licensing documents under this subchapter; or
    2. A bill of lading or other proper documentation demonstrating that the industrial hemp was legally imported or is otherwise legally present in this state under applicable state and federal laws relating to industrial hemp.

History. Acts 2017, No. 981, § 1; Acts 2019, No. 378, § 1.

Amendments. The 2019 amendment, in (b)(2), deleted the comma following “A bill of lading” and deleted the comma following “documentation”.

2-15-411. License revocation.

    1. The State Plant Board shall revoke the license of an industrial hemp grower licensee who fails to comply with this subchapter or the rules adopted under this subchapter.
    2. An industrial hemp grower licensee whose license is revoked under subdivision (a)(1) of this section is ineligible for licensure under this subchapter for up to five (5) years after the revocation.
    1. Before revocation of an industrial hemp grower license, the board shall provide the industrial hemp grower licensee notice and an informal hearing before the board to show cause why the license should not be revoked and the licensee's right to grow forfeited.
    2. If a license is revoked and a licensee's right to grow is forfeited as the result of an informal hearing under subdivision (b)(1) of this section, the industrial hemp grower licensee may request a formal administrative hearing before the board.
  1. An industrial hemp grower licensee whose license is revoked may appeal the final order of the board by filing an appeal in the circuit court of the district in which the licensee resides.

History. Acts 2017, No. 981, § 1.

2-15-412. Grant funds.

  1. An industrial hemp grower licensed under this subchapter may receive funds received by the state under the Arkansas Industrial Hemp Program Fund.
  2. The State Plant Board shall adopt rules for applications for grants under this section.

History. Acts 2017, No. 981, § 1.

Chapter 16 Plant Disease and Pest Control

Preambles. Acts 1931, No. 73 contained a preamble which read:

“Whereas, the necessity for high grade planting seed for agricultural crops is hereby recognized, the purpose of this act shall be to enable farmers to secure pure bred agricultural seeds true to variety, free from noxious weed seeds and free from plant diseases transmittable through the agency of planting seed and free from insect infestation … .”

Acts 1971, No. 79 contained a preamble which read:

“Whereas, the Alligator Weed poses a serious threat to the waterways and lands of this state, and the eradication of this plant is essential to the welfare of the State of Arkansas and its people; and

“Whereas, the United States Army Corps of Engineers desires to join with the State Plant Board in providing funds for an Alligator Weed Control Program, but Public Law 89-298 will not permit the Corps of Engineers to enter into this project unless the State of Arkansas shall agree to hold and save the United States free from claims that may occur from control operations … .”

Effective Dates. Acts 1917, No. 414, § 20: effective on passage. Emergency declared. Approved Mar. 28, 1917.

Acts 1927, No. 247, § 3: declared effective on passage.

Acts 1929, No. 197, § 4: effective on passage.

Acts 1939, No. 40, § 3: July 1, 1939.

Acts 1971, No. 79, § 3: Feb. 12, 1971. Emergency clause provided: “It is hereby found and determined by the General Assembly that alligator weed poses a serious threat to the waterways and lands of this state, and that the control and eradication of said alligator weed during its early stages of infestation in this state is of utmost urgency; that the United States Army Corps of Engineers has federal moneys available to assist the State Plant Board in carrying on an Alligator Weed Control and Eradication Program, and that the immediate passage of this act is necessary to enable the State Plant Board to enter into the necessary agreements with the United States Corps of Engineers to hold and save the United States free from claims that may occur from control operations, as required by Public Law 89-298. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the public peace, health and safety shall be in full force and effect after its passage and approval.”

Acts 1975, No. 409, § 4: Mar. 14, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that under the present law the Arkansas Forestry Association has no representation on the State Plant Board; that it is essential to the continued growth, development and success of the forestry industry in this state that it be given representation on the State Plant Board; that this act is designed to increase the membership of the State Plant Board and to provide that the additional member shall be a representative of the Arkansas Forestry Association; that this act should be given effect immediately in order to accomplish its purposes at the earliest possible date. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 691, § 19: effective on close of business, June 30, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that the various boards, commissions, departments, agencies, and services transferred to the Department of Commerce under the provisions of Acts 1971, No. 38, as amended, could perform their duties more efficiently as independent agencies; that the agencies and services consolidated within the Department of Commerce under Acts 1971, No. 38, are so diverse in their purposes and duties that it is difficult for the Administrator of said Department to exert leadership in the operation of such agencies and programs; and, that the abolishment of the Department of Commerce and its central services would result in financial savings which could be best used for the support and operation of other essential services of government, and that the immediate passage of this act is necessary to provide for the repeal of the Department of Commerce and for the transition of the various departments, agencies, boards, commissions, and programs and services within said Department to an independent status, as provided herein. Therefore, an emergency is hereby declared to exist and this act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect as follows: Section 15 of this act shall be effective from and after March 1, 1983, and the remaining provisions of this act shall be effective on the close of business June 30, 1983 and thereafter.”

Research References

Am. Jur. 3 Am. Jur. 2d, Agri., § 39 et seq.

C.J.S. 3 C.J.S., Agri., §§ 88 et seq., 102 et seq., 115 et seq.

Subchapter 1 — General Provisions

Effective Dates. Acts 1993, No. 783, § 13: Mar. 29, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly meeting in Regular Session that the provisions of this act are of critical importance to the state's ability to continue the duties, responsibilities, and functions of the State Plant Board. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 1262, § 8: July 1, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1993 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1993 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1993.”

Acts 1995, No. 1304, § 8: Apr. 14, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that the provisions of this act are of critical importance to the state's ability to continue the duties, responsibilities, and functions of the Arkansas Bureau of Standards. Therefor [sic], an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

2-16-101. Destruction of trees — Compensation.

  1. The owner of any valuable pear trees, cedar trees, or other growing trees of real value which have been or may hereafter be cut down and destroyed without his or her consent by the order and direction of the State Plant Board, or by its officers, employees, agents, or inspectors, shall be entitled to compensation for the actual value of the trees cut down or destroyed, to be paid by the county in which the trees were growing.
    1. The owner of the trees shall present to the county court his or her claim in writing, verified by his or her affidavit, stating the kind, number, and value of the trees and when and by what authority the trees were destroyed.
    2. The court shall allow from the county general fund such sum as the evidence shows the claimant is entitled to receive.

History. Acts 1927, No. 247, §§ 1, 2; Pope's Dig., §§ 2645, 2646; A.S.A. 1947, §§ 77-129, 77-130.

2-16-102. Date stamped on cotton insecticides — Penalty.

  1. Every person, firm, or corporation bagging any commercial cotton insecticide or poison shall stamp on each bag or on a tag attached to each bag the date on which the insecticide or poison was manufactured.
    1. Any person, firm, or corporation failing or refusing to comply with the requirements of this section shall be guilty of a violation and upon conviction shall be fined in any sum not less than five dollars ($5.00) nor more than one hundred dollars ($100).
    2. Each bag or other container that is shipped without first having the date placed on the bag or container shall be a separate offense.

History. Acts 1959, No. 458, §§ 1, 2; A.S.A. 1947, §§ 77-212, 77-213; Acts 2005, No. 1994, § 6.

Publisher's Notes. Acts 1959, No. 458, §§ 1, 2, are also codified as § 20-20-101.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (b)(1); and substituted “the date placed” for “placed the date” in (b)(2).

2-16-103. Alligator weed agreements.

The State Plant Board is authorized to enter into agreements with the United States Army Corps of Engineers to hold and save the United States free from claims that may occur from control operations jointly carried on by the board and the United States Army Corps of Engineers, or carried on by the board under financial assistance from the United States Army Corps of Engineers for the control and eradication of alligator weed in Arkansas.

History. Acts 1971, No. 79, § 1; A.S.A. 1947, § 77-139.

2-16-104. Disposition of funds.

  1. All fees, interest, penalties, and costs collected by the State Plant Board as authorized by law shall be deposited into the State Treasury on or before the fifth day of the month next following the month of collection thereof.
  2. Upon receipt of the funds, the Treasurer of State shall, after deducting therefrom the collection charge authorized by law, credit the net amount to the credit of the Plant Board Fund to be used for the maintenance, operation, and improvement of the board.
  3. All fees, fines, penalties, moneys, and funds arising from all sources resulting from the enforcement, operation, investigation, application, and administration of the laws under the jurisdiction of the Arkansas Bureau of Standards of the State Plant Board and the sale of property resulting from said purposes, and all moneys, grants, and other sources of funding procured for the bureau, shall be deposited into the Plant Board Fund, or any successor fund, to be used solely for the maintenance, operation, and improvement of the bureau.

History. Acts 1957, No. 417, § 1; A.S.A. 1947, § 77-138; Acts 1995, No. 1304, § 4.

2-16-105. Fire Ant Poison Cost Sharing Program.

    1. There is hereby established a program to be known as the “Fire Ant Poison Cost Sharing Program”.
    2. This program shall be administered by the State Plant Board; which shall have the authority to establish the necessary rules and procedures for the administration of the program.
    1. The board shall purchase the necessary chemicals for the eradication of fire ants and distribute such chemicals to the various counties of the state based upon the requests received from eligible purchasers in the county.
    2. The chemicals made available by the board shall become the responsibility of the county judge who shall oversee the safe storage and distribution of such chemicals under the direction of the University of Arkansas Cooperative Extension Service.
    1. It shall be the duty of the University of Arkansas Cooperative Extension Service to collect moneys received from the distribution and sale of such fire ant poison chemicals as determined by the board, and remit such moneys to the board on a monthly basis.
    2. The moneys generated from the sale of fire ant poison chemicals and received by the board from the University of Arkansas Cooperative Extension Service shall be deposited into the State Treasury to the credit of the Plant Board Fund as a nonrevenue receipt refund to expenditure, there to be used by the board to purchase additional fire ant poison chemicals for distribution to the various counties of the state for fire ant control.

History. Acts 1993, No. 1262, § 2.

2-16-106. Recovery of quarantine costs.

The State Plant Board is empowered to recover any identifiable expenses from the owner or other person in possession or control of the property upon which it enforces, maintains, and administers any quarantine that is imposed due to infestations or infections of insect pests, diseases, or noxious weeds. Whenever the owner or other person cannot be found or shall fail, neglect, or refuse to reimburse the board for incurred quarantine expenses, the board shall have and enforce a lien for such expenses upon the property upon which it enforces, maintains, or administers any quarantine, in the same manner as liens are had and enforced upon property for labor and materials furnished by virtue of contract with the owner.

History. Acts 1993, No. 783, § 8.

2-16-107. Rules.

The State Plant Board is hereby authorized to promulgate such rules as are necessary to administer the fees, rates, tolls, or charges for services established by §§ 2-16-407(f), 2-17-213, 2-17-238, 2-19-209(a), and 2-19-307(a) and is directed to prescribe and collect such fees, rates, tolls, or charges for the services delivered by the board in such manner as may be necessary to support the programs of the board as directed by the Governor and the General Assembly.

History. Acts 1993, No. 783, § 9.

2-16-108. State Plant Board Operations and Facilities Construction Fund — Definitions.

  1. As used in this section:
    1. “Board” means the State Plant Board; and
    2. “Fund” means the State Plant Board Operations and Facilities Construction Fund.
    1. There is created in accordance with §§ 19-4-801 — 19-4-803, 19-4-805, and 19-4-806 and the Revenue Classification Law, § 19-6-101 et seq., a cash fund entitled the State Plant Board Operations and Facilities Construction Fund, which shall be maintained in such depository bank or banks as may be designated from time to time by the board.
      1. The first two hundred thousand dollars ($200,000) in each fiscal year of all fees, interest, penalities, and costs collected by the board that constitute the special revenues specified in § 19-6-301(51) and all income, interest, and earnings thereof are declared to be cash funds to be used solely for paying the cost of operations and maintenance of the board and the financing of the acquisition, construction, and maintenance of facilities for the board's operations, including any additions, extensions, and improvements thereto, the renovation thereof, and the equipping of such facilities.
      2. Such cash funds shall not be deemed to be a part of the State Treasury for any purpose, including, without limitation, the provisions of Arkansas Constitution, Article 5, § 29, Article 16, § 12, or Arkansas Constitution, Amendment 20, or any other constitutional or statutory provision.
    2. The fund shall be held and the amounts therein invested by the board in accordance with the laws of the state pertaining to cash funds. The board may also pledge and use moneys in the fund to provide for the repayment of obligations issued by the Arkansas Development Finance Authority under the State Agencies Facilities Acquisition Act of 1991, § 22-3-1401 et seq., to accomplish the purposes specified in subdivision (b)(2)(A) of this section and to pay the costs and expenses related to the issuance of such obligations.
  2. The provisions of §§ 22-3-1402(c) [repealed] and 22-3-1406 [repealed] shall not be applicable in any respect to the acquisition, construction, extension, or renovation of or the equipping of facilities for the board and shall not under any circumstances constitute a limitation on or prohibition to the financing of the capital improvements by the authority.
  3. On July 30, 1999, all moneys then held in the Plant Board Fund created by § 19-6-408 that were derived from the special revenues described in subdivision (b)(2)(A) of this section shall be transferred to the State Plant Board Operations and Facilities Construction Fund, except that the amount transferred shall not exceed the maximum amount provided in subdivision (b)(2)(A) of this section.

History. Acts 1999, No. 846, § 1; 2001, No. 1553, § 28.

A.C.R.C. Notes. This section was transferred by Acts 2001, No. 1553, § 28 and was formerly codified as §§ 19-5-109219-5-1094.

2-16-109. Turf purchased with state moneys — Definition.

  1. As used in this section, “turf” means field-cultivated turf grass sod consisting of grass varieties tested by the National Turfgrass Evaluation Program.
  2. Turf shall be certified by the State Plant Board if the turf is:
    1. Purchased with state moneys, either directly or indirectly; or
    2. Used in a project conducted:
      1. By a state agency, department, board, or commission; or
      2. Under a contract with the State of Arkansas.
  3. Cool seasons variety blends of turf shall be grown from blue tag certified seed under the blue tag certification program of the Association of Official Seed Certifying Agencies.

History. Acts 2005, No. 1264, § 1.

Subchapter 2 — Plant Act of 1917

Effective Dates. Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer [sic], it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1997, No. 317, § 8: Mar. 3, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 10 of the First Extraordinary Session of 1995 abolished the Joint Interim Committee on Agriculture and Economic Development and in its place established separate House and Senate Committees; that various sections of the Arkansas Code refer to the Joint Interim Committee on Agriculture and Economic Development and should be corrected to refer to the House and Senate Interim Committees; that this act so provides; and that this act should go into effect immediately in order to make the laws compatible as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2003, No. 1473, § 74: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act includes technical corrects to Act 923 of 2003 which establishes the classification and compensation levels of state employees covered by the provisions of the Uniform Classification and Compensation Act; that Act 923 of 2003 will become effective on July 1, 2003; and that to avoid confusion this act must also [become] effective on July 1, 2003. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2003.”

Acts 2019, No. 423, § 2: Mar. 11, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that delay in implementation of this act would hinder the State Plant Board from enforcing egregious violations during the 2019 growing season, which could have a detrimental impact on the state's agricultural economy. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto”.

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-16-201. Title.

This subchapter shall be known as the “Arkansas Plant Act of 1917”.

History. Acts 1917, No. 414, § 1; C. & M. Dig., § 8024; Pope's Dig., § 12333; A.S.A. 1947, § 77-101.

2-16-202. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Insect pests and diseases” means insect pests and diseases injurious to plants and plant products of this state including any of the stages of development of such insects and diseases;
  2. “Persons” means individuals, associations, partnerships, and corporations;
  3. “Places” means vessels, cars, other vehicles, buildings, docks, nurseries, orchards, and other premises where plants and plant products are grown, kept, or handled; and
  4. “Plants and plant products” means trees, shrubs, vines, forage, and cereal plants, and all other plants; cuttings, grafts, scions, buds, and all other parts of plants; and fruit, vegetables, roots, bulbs, seeds, wood, lumber, and all other plant products.

History. Acts 1917, No. 414, § 2; C. & M. Dig., § 8025; Pope's Dig., § 12334; A.S.A. 1947, § 77-102.

2-16-203. Penalty.

  1. Any person who shall violate any provision or requirement of this subchapter or the rules made or of any notice given under this subchapter or who shall forge, counterfeit, deface, destroy, or wrongfully use any certificate provided for in this subchapter or in the rules made under this subchapter shall be guilty of a violation, and upon conviction he or she shall be punished by a fine of not more than one hundred dollars ($100).
        1. In a lawful proceeding respecting licensing, as defined in the Arkansas Administrative Procedure Act, § 25-15-201 et seq., in addition to or in lieu of any other lawful disciplinary action, the State Plant Board may assess a civil penalty of not more than one thousand dollars ($1,000) for each violation of any statute, rule, or order enforceable by the board.
          1. The board may assess a civil penalty greater than one thousand dollars ($1,000) but not more than twenty-five thousand dollars ($25,000) only if the board finds that a violation under this subdivision (b)(1)(A) is egregious.
          2. A violation is egregious only if the application of one (1) of the following herbicides is used intentionally in violation of the federal labeling requirements or a state law or rule regarding its application:
            1. Dicamba;
            2. An auxin-containing herbicide; or
            3. A new herbicide technology released after August 1, 2017.
              1. The first one thousand dollars ($1,000) of the assessed penalty for scholarships through the Arkansas State Plant Board Scholarship program; and
              2. The remainder divided as follows:
      1. In no case shall a single application or drift incident by a pesticide applicator be considered multiple violations based on the number of complaints.
      2. In no case shall the failure to meet minimum treating standards, except those that require a termiticide application, be considered a violation and subject to a civil penalty.
      1. The board shall by rule establish a schedule designating the minimum and maximum civil penalty that may be assessed under this section for violation of each statute, rule, or order over which it has regulatory control.
      2. The board may promulgate any other rule necessary to carry out the intent of this section.
    1. In the event of nonpayment of any civil penalty lawfully assessed under subdivision (b)(1) of this section, the civil penalty shall be recoverable in the name of the state by the Attorney General in Pulaski County Circuit Court or in the circuit court of the county in which the violation occurred.
      1. All sums paid or recovered under this section shall be deposited into the State Treasury.
        1. Sums collected under special revenue programs shall be deposited into the Plant Board Fund.
        2. Sums collected under general services programs shall be deposited into the Miscellaneous Agencies Fund Account.
    2. All rules promulgated under this section shall be reviewed by the House Committee on Agriculture, Forestry, and Economic Development and the Senate Committee on Agriculture, Forestry, and Economic Development or subcommittees of the House Committee on Agriculture, Forestry, and Economic Development and the Senate Committee on Agriculture, Forestry, and Economic Development.
  2. Moneys collected through a civil penalty assessed by the board shall be distributed as follows:
    1. For amounts up to one thousand dollars ($1,000), as currently used, including funding for the Arkansas State Plant Board Scholarship program; and
    2. For amounts more than one thousand dollars ($1,000):
      1. Sixty percent (60%) for scholarships through the Arkansas State Plant Board Scholarship program; and
      2. Forty percent (40%) deposited into the University of Arkansas Fund to be used by the University of Arkansas Cooperative Extension Service.

History. Acts 1917, No. 414, § 15; C. & M. Dig., § 8038; Pope's Dig., § 12346; A.S.A. 1947, § 77-114; Acts 1995, No. 141, § 1; 1995, No. 167, § 1; 1997, No. 317, § 1; 2003, No. 1473, § 1; 2005, No. 1994, § 7; 2017, No. 778, §§ 1, 2; 2019, No. 315, § 8; 2019, No. 423, § 1.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (a).

The 2017 amendment redesignated former (b)(1)(A) as (b)(1)(A)(i); added (b)(1)(A)(ii); and added (c).

The 2019 amendment by No. 315 substituted “rule” for “regulation” in (b)(2)(B).

The 2019 amendment by No. 423 substituted “the application of one (1) of the following herbicides is used intentionally in violation of the federal labeling requirements or a state law or rule regarding its application” for “significant off-target crop damage occurred as a result of the application of” in (b)(1)(A)(ii) (b) ; added the (b)(1)(A)(ii) (b)(1) through (3) designations; and made stylistic changes.

Case Notes

Proof.

In a prosecution for selling and offering for sale nursery stock infected with a disease in violation of a rule of the State Plant Board, the state was not required to show that the sale was made with knowledge that the trees were so affected. Jacobs v. State, 155 Ark. 95, 243 S.W. 952 (1922).

Regulations.

Arkansas State Plant Board, in a proceeding respecting licensing, properly adopted its own set of Pesticide Enforcement Response Regulations that included a penalty matrix by which the Board determined the nature of a violation and assessed its severity and the appropriate sanction. Ark. State Plant Bd. v. Bullock, 345 Ark. 373, 48 S.W.3d 516 (2001).

Violation of Rule.

Rule of State Plant Board is not void for failure to prescribe a penalty since the penalty is provided by this section. Howard v. State, 154 Ark. 430, 242 S.W. 818 (1922).

2-16-204. Actions of agents.

In construing and enforcing the provisions of this subchapter, the act, omission, or failure of any official agent or other person acting for or employed by any person, association, partnership, or corporation within the scope of his or her employment or office shall, in every case, also be deemed the act, omission, or failure of the person, association, partnership, or corporation as well as that of the person.

History. Acts 1917, No. 414, § 16; C. & M. Dig., § 8039; Pope's Dig., § 12347; A.S.A. 1947, § 77-115.

2-16-205. Effect of federal law.

This subchapter shall not be so construed or enforced as to conflict in any way with any act of the United States Congress regulating the movement of plants and plant products in interstate or foreign commerce.

History. Acts 1917, No. 414, § 17; C. & M. Dig., § 8040; Pope's Dig., § 12348; A.S.A. 1947, § 77-116.

2-16-206. State Plant Board.

  1. There is created and established a State Plant Board, composed of eighteen (18) members, as follows:
    1. Two (2) nonvoting members designated by the Vice President for Agriculture of the University of Arkansas or his or her designee;
    2. A practical cotton grower, actively engaged in the business, to be appointed by the Governor;
    3. One (1) member to represent the Arkansas Plant Food Association, actively engaged in the business, to be appointed by the Governor;
    4. A practical rice grower, actively engaged in the business, to be appointed by the Governor;
    5. A practical horticulturist, actively engaged in the business, to be elected by the Arkansas State Horticultural Society;
    6. A nurseryman, actively engaged in the business, to be elected by the Arkansas Green Industry Association;
    7. A practical seed grower, actively engaged in the business, to be elected by the Arkansas Seed Growers Association;
    8. A pest control operator, actively engaged in the business, to be elected by the Arkansas Pest Management Association, Inc.;
    9. A seed dealer, actively engaged in the business, to be elected by the Arkansas Seed Dealers' Association;
    10. One (1) member representing the Arkansas Bureau of Standards to be appointed by the Arkansas Oil Marketers Association;
    11. A pesticide manufacturer, actively engaged in the business, to be elected by the Arkansas Crop Protection Association Inc.;
    12. One (1) member to represent the Arkansas Agricultural Aviation Association, to be elected by the Arkansas Agricultural Aviation Association;
    13. One (1) member to represent the Arkansas Forestry Association, to be elected by the Arkansas Forestry Association;
    14. Two (2) farmers actively and principally engaged in farming in this state, appointed by the Governor;
    15. One (1) representative of the livestock industry, actively engaged in the business, to be appointed by the Governor; and
    16. One (1) representative of the forage industry, actively engaged in the business, to be appointed by the Governor.
  2. Board members shall serve a term of two (2) years or until such time as a successor has been elected or appointed as herein provided. A majority of the members of the board shall constitute a quorum for all purposes.
  3. The chair, vice chair, and secretary-treasurer shall be elected by the members of the board. The board shall designate some official or employee of the board to serve as disbursing officer of the board.
  4. Meetings of the board shall be called by the chair or by four (4) members of the board.
  5. The members shall serve without compensation but may receive expense reimbursements in accordance with § 25-16-901 et seq. and shall be authorized to provide a suitable office where the meetings of the board may be held and its records kept.
  6. If necessary to provide suitable space for its offices, laboratories, and other needs, the board may buy property, build buildings, or lease property for a period covering not more than fifteen (15) years from the date of lease.

History. Acts 1917, No. 414, § 3; C. & M. Dig., § 8026; Acts 1929, No. 197, § 1; 1931, No. 73, § 2; 1935, No. 97, § 1; Pope's Dig., § 12335; Acts 1953, No. 408, § 1; 1955, No. 239, § 1; 1961, No. 144, § 1; 1967, No. 77, § 1; 1971, No. 276, § 1; 1975, No. 409, § 1; A.S.A. 1947, § 77-103; Acts 1997, No. 250, § 2; 2013, No. 591, §§ 1, 2; 2019, No. 1056, § 1.

Publisher's Notes. Acts 1967, No. 77, § 3; Acts 1971, No. 276, § 2; and Acts 1975, No. 409, § 2, all provided that it was the intent of these acts to add members to the State Plant Board and that the addition of the members would not affect the term of any member then serving on the board. The terms of the members of the board are now arranged so that 16 terms expire every two years.

Acts 1983, No. 691, § 11, provided, in part, that the State Plant Board and its powers, functions, and duties, which had been transferred to the Department of Commerce by Acts 1971, No. 38, § 16, would be separated from the Department of Commerce and would be an independent agency of state government, to function in the same manner it functioned prior to its transfer to the Department of Commerce.

Acts 1993, Nos. 610 and 624, § 1, provided: “The Arkansas Bureau of Standards, created by Act 482 of 1963, as amended, the same being A.C.A. 4-18-201 et seq., and its functions, powers, duties, assets, properties, and appropriations are transferred by a type 2 transfer [see § 25-2-105] to the State Plant Board.”

Amendments. The 2013 amendment substituted “eighteen (18)” for “sixteen (16)” in the introductory language of (a); and added (a)(16) and (a)(17).

The 2019 amendment deleted former (2) and redesignated the remaining subdivisions accordingly; rewrote (1); substituted “Plant Food Association” for “fertilizer and cotton oil mills” in (3); and rewrote (10).

Cross References. Division of Agriculture — Service on boards or commissions, § 6-64-106.

2-16-207. Powers and duties of board.

    1. The State Plant Board shall keep itself informed as to the varieties of insect pests, diseases, and noxious weeds and the origin, locality, nature, and appearance thereof; the manner in which they are disseminated; and the approved methods of treatment and eradication.
    2. Every such insect pest, disease, and noxious weed, and every plant and plant product infested or infected is declared to be a public nuisance.
    1. The board in its rules made under this subchapter shall list the insect pests, diseases, and noxious weeds, of which it shall find that the introduction into or the dissemination within the state should be prevented in order to safeguard the plants and plant products of this state, and the list shall include the plants and plant products or other substances on or in which these pests may be carried.
    2. Every person who has knowledge of the presence of any insect pest, disease, or noxious weed listed as required in this section in the rules made under this subchapter, in or upon any place, shall immediately report it to the board or inspectors thereof, giving such detailed information relative thereto as he or she may have.
    3. Every person who deals in or engages in the sale of plants or plant products shall furnish to the board or its inspectors, when requested, a statement of the names and addresses of the persons from whom and the localities where he or she purchased or obtained the plant and plant products.
    1. The board shall make rules for carrying out the provisions and requirements of this subchapter, including rules under which the inspectors and other employees of the Department of Agriculture shall:
      1. Inspect places, plants and plant products, and things and substances used or connected herewith;
      2. Investigate, control, eradicate, and prevent the dissemination of insect pests, diseases, and noxious weeds; and
      3. Supervise or cause the treatment, cutting, and destruction of infected or infested plants and plant products.
    2. For the purpose of preventing fraud and misrepresentation, the board shall make rules governing the transportation, distribution, or sale of sorghum seed, hybrid corn seed, and other seeds intended for planting.
  1. For the purpose of carrying out the provisions and requirements of this subchapter, of the rules made, and notices given pursuant thereto, the board and the inspectors and employees of the department shall have power to enter into or upon any place and to open any bundle, package, or other container of plants or plant products.

History. Acts 1917, No. 414, §§ 5, 6, 13; C. & M. Dig., §§ 8028, 8029, 8036; Acts 1937, No. 203, § 1; Pope's Dig., §§ 12337, 12338, 12344; Acts 1939, No. 40, § 1; 1943, No. 44, § 1; A.S.A. 1947, §§ 77-105, 77-106, 77-112; Acts 2019, No. 910, § 18.

Publisher's Notes. Acts 1949, No. 327, § 1, provided that all of the powers, duties, functions, and authority vested in the Director of the Department of Finance and Administration governing the manufacture, sale, distribution, inspection, and control of concentrated commercial feeds, commercial fertilizers, and fertilizer materials and cottonseed meal would be transferred to the State Plant Board.

Amendments. The 2019 amendment inserted “of the Department of Agriculture” in the introductory language of (c)(1) and in (d); and made stylistic changes.

Cross References. Administration of Soil Amendment Act of 1977,§ 2-19-404.

Arkansas Feed Law of 1997, § 2-37-101 et seq.

Duty to administer and enforce the Fruit and Vegetable Labeling Act of 1947, § 2-20-306.

Duty to administer Pesticide Use and Application Act, § 20-20-205.

Duty to carry out provisions of Pest Control Law, § 17-37-105.

Enforcement of Agricultural Liming Materials Act, § 2-19-308.

Fertilizers, § 2-19-201 et seq.

Power to investigate and certify to varietal purity and fitness for planting of agricultural seed, rules and regulations, §§ 2-18-103, 2-18-104.

Powers and duties under Agricultural Products Grading Act of 1925, § 2-20-101 et seq.

Case Notes

Rules and Regulations.

Rule is not invalid because no penalty is prescribed since § 2-16-203 prescribes the penalty. Howard v. State, 154 Ark. 430, 242 S.W. 818 (1922).

The State Plant Board was authorized to adopt and promulgate a rule requiring cedar trees infected with rust within a certain distance of an orchard to be cut down, and one disobeying such an order was guilty of a misdemeanor. Howard v. State, 154 Ark. 430, 242 S.W. 818 (1922).

A rule of the State Plant Board prohibiting the sale of infected nursery stock has the force and effect of a statute and should be construed as if it were one. Jacobs v. State, 155 Ark. 95, 243 S.W. 952 (1922).

2-16-208. Director of board.

    1. For the purpose of carrying out the provisions of this subchapter, the State Plant Board shall employ, prescribe the duties of, and fix the compensation for a Director of the State Plant Board.
      1. With the approval of the State Plant Board, the director may employ such inspectors or other employees as may be required and may incur such expenses as may be necessary within the limits of the appropriation made by law.
      2. The State Plant Board shall be subject to all executive orders by the Governor instituting a hiring freeze or restriction applicable to all cabinet-level departments.
    1. The director shall be appointed by the State Plant Board with the approval of the Governor and shall serve at the pleasure of the Governor.
      1. The director shall report to the Secretary of the Department of Agriculture.
      2. The secretary shall serve as the liaison between the State Plant Board and the Governor.
    1. The director shall furnish a bond of five thousand dollars ($5,000) with sufficient sureties approved by the State Plant Board for the faithful performance of his or her duties of this subchapter and the rules of the State Plant Board.
    2. Any person suffering damage by reason of the acts or omissions of the chief inspector or his or her duly authorized deputies or employees may bring action on the bond for damages.
    3. The State Plant Board may require to indemnify the director that similar bonds shall be furnished by deputies, inspectors, or employees.
  1. The State Plant Board shall cooperate with other departments, boards, and officers of this state and of the United States as far as possible.
  2. The secretary shall not be appointed to the position of director.

History. Acts 1917, No. 414, § 4; C. & M. Dig., § 8027; Acts 1921, No. 664, § 1; Pope's Dig., § 12336; Acts 1953, No. 360, § 1; 1983, No. 691, § 11; A.S.A. 1947, §§ 77-103.2, 77-104; Acts 2019, No. 910, § 19.

A.C.R.C. Notes. The operation of subsection (c) of this section was suspended by adoption of a self-insured fidelity bond program for the public officers, officials and employees, effective July 20, 1987, pursuant to § 21-2-701 et seq. The subsection may again become effective upon cessation of coverage under that program. See § 21-2-703.

Publisher's Notes. Acts 1967, No. 77, § 2, provided that the title of the “Chief Inspector of the State Plant Board” would be changed to “Director, State Plant Board” and that the director would perform all powers and duties and assume all responsibilities formerly vested by law in the Chief Inspector of the State Plant Board.

Amendments. The 2019 amendment substituted “State Plant Board” for “board” throughout the section; redesignated (a) as (a)(1) and (a)(2)(A), and added (a)(2)(B); and redesignated (b) as (b)(1), and added (b)(2); and added (e).

2-16-209. Transportation, etc., of insect pests, etc., generally.

  1. Transportation through or into or transportation, distribution, or sale within the state of any insect pest, plant disease, noxious weed, or any plant, plant product, or other substance, listed in the rules of the State Plant Board as required under § 2-16-207, or of sorghum seed, hybrid corn seed, or other planting seeds for the transportation, distribution, or sale of which the board has made rules under this subchapter is prohibited except under such safeguards as may be provided for in the rules of the board.
  2. To cover expenses incident to inspection or treatment or incident to the issuance of such permits or certificates as may be required by the board's rules made under this subchapter, the board may require the payment of reasonable fees which shall be deposited in the manner prescribed by § 2-16-210 to be used in carrying out the provisions of this subchapter.
  3. The board is empowered to require that a shipper who ships plants from another state into Arkansas must meet any and all requirements which the shipper's state would make of an Arkansas shipper who ships plants into that state.
  4. Inspectors carrying out the provisions of this subchapter on issuance of a written notice may cause to be held or to be sent out of the state or to be destroyed any plant, plant product, or other substance which has been brought into or is being transported within the state in violation of any state or federal law, rule, or regulation. They may stop and detain for inspection any person, car, or other carrier.

History. Acts 1917, No. 414, § 11; C. & M. Dig., § 8034; Acts 1929, No. 197, § 3; 1937, No. 203, § 2; Pope's Dig., § 12342; Acts 1939, No. 40, § 2; 1943, No. 44, § 2; A.S.A. 1947, § 77-110; Acts 2019, No. 910, § 20.

Amendments. The 2019 amendment, in the first sentence of (d), substituted “carrying out the provisions of this subchapter” for “of the board” and inserted “rule”.

2-16-210. Certificate of inspection required.

  1. It shall be unlawful for any person to sell, give away, carry, ship, or deliver for carriage or shipment, within this state, any plants or plant products listed as required by this subchapter unless the plants and plant products have been officially inspected and a certificate has been issued by an inspector of the State Plant Board. This certificate shall state that the plants or plant products have been inspected and found to be apparently free from insect pests and diseases. It shall also be unlawful for any person to sell, give away, carry, ship, or deliver for carriage any plants or plant products unless the plants or plant products bear a certificate issued by an inspector of the board. This certificate shall show that the place on which the plants or plant products were grown has been inspected and found to be apparently free from insect pests and diseases and any other facts provided for in the rules made under this subchapter.
  2. This section shall not apply to plants and plant products not affected by rules made under § 2-16-211 when the plants or plant products are disposed of in local trade.
  3. When any person shall notify the board of impending shipments of plants or plant products and the board fails to provide the proper inspector to inspect the plants or plant products under the rules made under this subchapter, the person desiring to make the shipment may do so without being liable to provisions of this section.
  4. For the issuance of the certificate as provided for in this section, the board may require the payment of a reasonable fee to cover the expenses of the inspection and certification. If it shall be found at any time that a certificate of inspection, issued or accepted under the provisions of this section, is being used in connection with plants and plant products which are infested or infected with insect pests or diseases, its further use may be prohibited, subject to such inspection and other disposition of the plants and plant products involved as may be provided for by the board.
  5. All moneys collected by the board under this section or under § 2-16-211 or § 2-16-214 shall be deposited with the treasurer of the board and shall be used in carrying out the provisions of this subchapter.

History. Acts 1917, No. 414, § 9; C. & M. Dig., § 8032; Pope's Dig., § 12340; A.S.A. 1947, § 77-108.

Publisher's Notes. The provisions of this section relating to the disposition of moneys may be affected by § 19-5-101 et seq. and by § 2-16-104.

2-16-211. Eradication of pests, diseases, or noxious weeds.

  1. Whenever the inspection discloses that any places, plants, plant products, or things and substances used or connected therewith, are infested or infected with any insect pest, disease, or noxious weed, listed, as required by § 2-16-207 in rules made under this subchapter, written notice thereof shall be given the owner or other person in possession or control of the place where found, and the owner or other person shall proceed to control, eradicate, or prevent the dissemination of the insect pest, disease, or noxious weed. The owner shall then remove, cut, or destroy infested or infected plants and plant products or things and substances used or connected therewith, within the time and in the manner prescribed by the notice or the rules made under this subchapter.
  2. Whenever the owner or other person cannot be found or shall fail, neglect, or refuse to obey the requirements of the notice and the rules made under this subchapter, the requirements shall be carried out by the inspector or other employees of the State Plant Board. The board shall have and enforce a lien for the expenses thereof against the place in which or upon which the expenses were incurred in the same manner as liens are had and enforced upon buildings, lots, wharves, and piers for labor and materials furnished by virtue of contract with the owner.

History. Acts 1917, No. 414, § 7; C. & M. Dig., § 8030; Acts 1937, No. 203, § 1; Pope's Dig., § 12339; A.S.A. 1947, § 77-107.

2-16-212. Regulation of pests or diseases within state.

  1. Whenever the State Plant Board shall find that there exists in this state or any part thereof any insect, disease, or noxious weed and that its dissemination should be controlled or prevented, the board may give notice thereof, specifying the plants and plant products infested, infected, or likely to become infested or infected therewith.
  2. The movement, planting, or other use of any plant, plant products, or other thing or substance specified in the notice as likely to carry and disseminate the insect pest, disease, or noxious weed, except under such safeguard as may be provided in the rules made by the board, shall be prohibited within such area as may be designated in the public notice until the board shall find that the danger of the dissemination of the insect, disease, or noxious weed has ceased to exist, of which the board shall give public notice.
  3. Before the order of prohibition shall be issued, a public hearing, with due public notice thereof, shall be held by the board, at which hearing interested persons may appear in person or by attorney.

History. Acts 1917, No. 414, § 12; C. & M. Dig., § 8035; Acts 1937, No. 203, § 1; Pope's Dig., § 12343; A.S.A. 1947, § 77-111.

2-16-213. Receiving noncomplying plants, etc.

Any person in this state who receives any plant or plant product sold, given away, carried, shipped, or delivered for carriage or shipment within this state, as to which the requirements of § 2-16-210 have not been complied with, shall immediately inform the State Plant Board or an inspector thereof and isolate and hold the plant product unopened or unused subject to such inspection and other disposition as may be provided for by the board.

History. Acts 1917, No. 414, § 10; C. & M. Dig., § 8033; Pope's Dig., § 12341; A.S.A. 1947, § 77-109.

2-16-214. Review of rules, etc.

Any person affected by any rules made or notice given, under this subchapter, may have a review thereof by the State Plant Board for the purposes of having the rules or notice modified, suspended, or withdrawn, and, pending the review, the rules or notice shall be suspended.

History. Acts 1917, No. 414, § 14; C. & M. Dig., § 8037; Pope's Dig., § 12345; A.S.A. 1947, § 77-113.

Subchapter 3 — Emergency Plant Act of 1921

Effective Dates. Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer [sic], it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-16-301. Title.

This subchapter shall be known as the “Arkansas Emergency Plant Act of 1921”.

History. Acts 1921, No. 519, § 1; A.S.A. 1947, § 77-117.

2-16-302. Definitions.

For the purposes of this subchapter, unless the context otherwise requires, the terms and definitions set forth in § 2-16-202 are adopted and made a part of this subchapter. In addition, the term “dangerous insect pest and plant diseases” shall be construed to mean such insect pests and plant diseases as the pink bollworm, the Mexican bean beetle, potato wart disease, “take all”, and such other insect pests and plant diseases, the prevalence of which would threaten an established agricultural industry in the state.

History. Acts 1921, No. 519, § 2; Pope's Dig., § 12358; A.S.A. 1947, § 77-118.

2-16-303. Provisions supplemental.

This subchapter shall not be construed as limiting the authority conferred upon the State Plant Board by the Arkansas Plant Act of 1917, § 2-16-201 et seq., but shall be construed as supplemental thereto.

History. Acts 1921, No. 519, § 12; Pope's Dig., § 12368; A.S.A. 1947, § 77-128.

2-16-304. Penalties — Prosecution.

  1. Any person who shall violate any provision of this subchapter or who shall interfere with any member of the State Plant Board or any inspector or employee while engaged in the performance of his or her duties under this subchapter shall be guilty of a Class A misdemeanor.
    1. Upon information furnished by the board, it shall be the duty of the Attorney General or the prosecuting attorney of the district in which an alleged violation of any provision of this subchapter may occur to enforce the provisions of this subchapter by proceedings in any court of competent jurisdiction.
    2. If the remedy elected to be pursued is by writ of injunction, no court of this state shall have the right to set aside or stay the writ of injunction before a hearing upon the merits.

History. Acts 1921, No. 519, § 8; Pope's Dig., § 12364; A.S.A. 1947, § 77-124; Acts 2005, No. 1994, § 331.

Amendments. The 2005 amendment, in (a), inserted “or her” and “Class A” in the first sentence and deleted the former second sentence.

2-16-305. Actions of agents.

In construing and enforcing the provisions of this subchapter, the act, omission, or failure of an official, agent, or other person acting for or employed by any person, association, partnership, or corporation within the scope of his or her employment or office shall, in every case, also be deemed the act, omission, or failure of the person, association, partnership, or corporation as well as that of the person acting as the agent.

History. Acts 1921, No. 519, § 10; Pope's Dig., § 12366; A.S.A. 1947, § 77-126.

2-16-306. Enforcement.

    1. The provisions of this subchapter and the rules promulgated hereunder shall be carried out by the Director of the State Plant Board, who shall serve without extra compensation.
    2. The director may, with the approval of the State Plant Board, employ such inspectors or other employees as may be required and may incur such expenses as may be necessary, within the limits of the appropriation made by law or declared by the Governor.
  1. For the purposes of carrying out the requirements of this subchapter, and the rules made and notices given pursuant thereto, the inspectors and employees of the Department of Agriculture shall have the right to enter into or upon any place and for purpose of inspection to open any bundle, package, or other container of plants, plant products, articles, or substances.
    1. In the enforcement of this subchapter and of the rules made pursuant thereto, the board may summon witnesses; require the production of any books, papers, or documents it deems material; administer oaths; and hear witnesses.
    2. It shall be the duty of each sheriff in the state to serve a summons when requested by the board.

History. Acts 1921, No. 519, §§ 3, 7, 9; Pope's Dig., §§ 12359, 12363, 12365; A.S.A. 1947, §§ 77-119, 77-123, 77-125; Acts 2019, No. 910, §§ 21, 22.

Amendments. The 2019 amendment substituted “inspectors and employees of the Department of Agriculture” for “board and its inspectors and employees” in (b); and substituted “State Plant Board” for “board” in (c)(1).

2-16-307. Infested zones — Emergency proclamation.

  1. Upon satisfactory information acquired in any manner or upon information furnished by the State Plant Board, signed by the secretary and at least three (3) members thereof, showing that a dangerous insect pest or plant disease exists in the state or is in dangerous proximity thereto, the Governor shall issue a proclamation specifying the insect pest or plant disease. The proclamation shall declare such a pest or disease to be a dangerous insect pest or plant disease which threatens an agricultural industry. It shall specify the plants, plant products, articles, substances, and places capable of harboring or spreading the dangerous insect pest or plant disease and shall declare the zones or areas in which the danger exists.
  2. Until such time as the Governor shall ascertain from the board, as provided above, and shall by proclamation declare that the emergency has ceased to exist, it shall be unlawful for any person to grow or maintain within those zones or areas any plants, plant products, articles, substances, or places infected or infested with a dangerous plant disease or insect pest or likely to become so infested or infected.
  3. Plants, plant products, articles, substances, or places may be grown or maintained in the manner and method and under the conditions which shall be prescribed by rules made and promulgated by the board as provided in this subchapter.

History. Acts 1921, No. 519, § 4; Pope's Dig., § 12360; A.S.A. 1947, § 77-120.

2-16-308. Infested zones — Regulation by State Plant Board — Destruction of plants, etc.

  1. It shall be the duty of the State Plant Board, and the board is authorized and directed, when public safety will permit, to make and promulgate rules which shall permit and govern the growing and maintenance in any zones or areas mentioned in § 2-16-307 of any plants, plant products, articles, substances, or places referred to in § 2-16-307.
  2. Whenever it shall be ascertained and determined by the board that any plants, plant products, articles, substances, or places are infested or infected or are so situated as to be subject to infestation or infection by a dangerous insect pest or plant disease, and thereby capable of spreading the infestation or infection, the board shall require the treatment, cutting, or destruction of the plants, plant products, articles, substances, or places.
  3. If the owner, custodian, or occupant of the plants, plant products, articles, substances, or places referred to in this section cannot be found or shall, upon reasonable notice, fail or refuse to comply with the requirements of this subchapter, the requirements shall be carried out by the board and the expense thereof charged against the owner, custodian, or occupant.

History. Acts 1921, No. 519, § 5; Pope's Dig., § 12361; A.S.A. 1947, § 77-121.

2-16-309. Claims committee.

  1. Whenever property shall be damaged, destroyed, or rendered unproductive in carrying out the provisions of this subchapter, the Governor shall appoint a committee on claims for each county affected.
  2. The committee shall consist of two (2) representatives of the county affected, and three (3) members of the State Plant Board, as follows:
    1. The practical cotton grower;
    2. The nurseryman; and
    3. The practical horticulturist.
  3. The members of the committee shall serve as long as the Governor shall deem their services to be necessary.
    1. The committee shall elect a chairperson.
    2. A majority of the members shall constitute a quorum for the transaction of business, but there shall be present at every meeting at least one (1) of the members appointed by the Governor to represent the county concerned and not less than two (2) members of the board composing the committee.
  4. The members of the committee shall serve without compensation, but may receive expense reimbursement in accordance with § 25-16-901 et seq.
  5. The committee shall engage such clerical and other help as may be necessary.
  6. The committee shall investigate and cause a survey to be made to determine the claims of all persons whose property has been destroyed, damaged, or rendered unproductive in carrying out the provisions of this subchapter.
  7. The committee shall submit each claim approved by it to the secretary of the board, who shall then issue for each claim a voucher for a warrant drawing on the State Treasury out of funds made available for the purpose, to the amount of the claims approved by the committee.

History. Acts 1921, No. 519, § 6; Pope's Dig., § 12362; Acts 1985, No. 385, § 1; A.S.A. 1947, § 77-122; Acts 1997, No. 250, § 3.

2-16-310. Annual report.

The State Plant Board shall make an annual report to the Governor, in which report it shall give an account of the disposition of the appropriations which may be made for the purposes of carrying out the provisions of this subchapter.

History. Acts 1921, No. 519, § 11; Pope's Dig., § 12367; A.S.A. 1947, § 77-127.

Subchapter 4 — Pesticide Control

Publisher's Notes. Acts 1975, No. 410, § 23, provided that the enactment of this subchapter would not have the effect of terminating or in any way modifying any liability, civil or criminal, that was already in existence on the date this subchapter became effective.

Cross References. Pest Control Law, § 17-37-101 et seq.

Pesticide Use and Application Act, § 20-20-201 et seq.

Effective Dates. Acts 1975, No. 410, § 25: effective upon becoming law for purpose of adoption of rules and regulations; effective Jan. 1, 1976, for other purposes.

Acts 1993, No. 783, § 13: Mar. 29, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly meeting in Regular Session that the provisions of this act are of critical importance to the state's ability to continue the duties, responsibilities, and functions of the State Plant Board. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Research References

ALR.

Products liability for fertilizers, insecticides, pesticides, fungicides, weed killers, or articles used in application thereof. 12 A.L.R.4th 462.

Am. Jur. 61C Am. Jur. 2d, Poll. Cont., § 1633 et seq.

C.J.S. 3 C.J.S., Agri., § 115 et seq.

2-16-401. Title.

This subchapter shall be known as the “Arkansas Pesticide Control Act”.

History. Acts 1975, No. 410, § 1; A.S.A. 1947, § 77-227.

2-16-402. Purpose.

  1. The purpose of this subchapter is to regulate in the public interest the labeling, distribution, storage, transportation, and disposal of pesticides as defined in this subchapter.
  2. Pesticides are valuable to our state's agricultural production and to the protection of man and the environment from insects, rodents, weeds, and other forms of life which may be pests; but it is essential to the public health and welfare that they be regulated to prevent adverse effects on human life and the environment.
  3. New pesticides are continually being discovered, synthesized, or developed which are valuable for the control of pests and for use as defoliants, desiccants, plant regulators, spray adjuvants, and related purposes. However, such pesticides may be ineffective, may cause injury to man, or may cause unreasonable adverse effects on the environment.
  4. Therefore, it is deemed necessary to provide for regulation of pesticides.

History. Acts 1975, No. 410, § 3; A.S.A. 1947, § 77-229.

2-16-403. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Active ingredient” means any ingredient which will prevent, destroy, repel, control, or mitigate pests or which will act as a plant regulator, defoliant, desiccant, or spray adjuvant;
  2. “Adulterated” shall apply to any pesticide if its strength or purity falls below the professed standard or quality as expressed on its labeling or under which it is sold, if any substance has been substituted wholly or in part for the pesticide, or if any valuable constituent of the pesticide has been wholly or in part abstracted;
  3. “Animal” means all vertebrate and invertebrate species, including, but not limited to, man and other mammals, birds, fish, and shellfish;
  4. “Beneficial insects” means those insects which during their life cycle are effective pollinators of plants, are parasites or predators of pests, or are otherwise beneficial;
  5. “Defoliant” means any substance or mixture of substances intended for causing the leaves or foliage to drop from a plant, with or without causing abscission;
  6. “Desiccant” means any substance or mixture of substances intended for artificially accelerating the drying of plant tissue;
  7. “Device” means any instrument or contrivance, other than a firearm, which is intended for trapping, destroying, repelling, or mitigating any pest or any other form of plant or animal life, other than man, and other than bacteria, virus, or other microorganism on or in living man or other living animals; but not including equipment used for the application of pesticides when sold separately from the sale of pesticides;
  8. “Distribute” means to offer for sale, hold for sale, sell, barter, ship, deliver for shipment, or receive and having so received, deliver or offer to deliver, pesticides in this state;
  9. “Environment” includes water, air, land, and all plants and man and other animals living therein, and the interrelationships which exist among these;
  10. [Repealed.]
  11. [Repealed.]
  12. “Fungus” means any non-chlorophyll-bearing thallophytes, that is, all non-chlorophyll-bearing plants of a lower order than mosses and liverworts, for example, rusts, smuts, mildews, molds, yeasts, and bacteria, except those on or in living man or other living animals, and except those in or on processed food, beverages, or pharmaceuticals;
  13. “Highly toxic pesticide” means any pesticide determined to be a highly toxic pesticide under the authority of Section 25(c)(2) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136w(c)(2), or by the State Plant Board under § 2-16-406(a)(2);
  14. “Imminent hazard” means a situation which exists when the continued use of a pesticide during the time required for cancellation proceedings under § 2-16-408 would likely result in unreasonable adverse effects on the environment or will involve unreasonable hazard to the survival of a species declared endangered by the United States Secretary of the Interior under P.L. 91-135;
  15. “Inert ingredient” means an ingredient which is not an active ingredient;
  16. “Ingredient statement” means:
    1. Statement of the name and percentage of each active ingredient together with the total percentage of the inert ingredients in the pesticide; and
    2. When the pesticide contains arsenic in any form, the ingredient statement shall also include percentages of total and water-soluble arsenic, each calculated as elemental arsenic. In the case of a spray adjuvant, the ingredient statement need contain only the names of the functioning agents and the total percentage of the constituents ineffective as spray adjuvants;
  17. “Insect” means any of the numerous small invertebrate animals generally having the body more or less obviously segmented, for the most part belonging to the class insecta, comprising six-legged, usually winged forms, for example, beetles, bugs, bees, flies, and other allied classes of arthropods whose members are wingless and usually have more than six (6) legs, for example, spiders, mites, ticks, centipedes, and wood lice;
  18. “Label” means the written, printed, or graphic matter on or attached to the pesticide or device or any of its containers or wrappers;
  19. “Labeling” means the label and all other written, printed, or graphic matter:
    1. Accompanying the pesticide or device at any time; or
    2. To which reference is made on the label or in literature accompanying the pesticide or device, except to current official publications of the United States Environmental Protection Agency; the United States Department of Agriculture, the United States Department of the Interior, and the United States Department of Health and Human Services; state experiment stations; state agricultural colleges; and other similar federal or state institutions or agencies authorized by law to conduct research in the field of pesticides;
  20. “Nematode” means invertebrate animals of the phylum nemathelminthes and class nematoda, that is, unsegmented round worms with elongated, fusiform, or sac-like bodies covered with cuticle and inhabiting soil, water, plants, or plant parts; they may also be called nemas or eelworms;
  21. “Person” means any individual, partnership, association, fiduciary, corporation, or any organized group of persons whether incorporated or not;
  22. “Pest” means:
    1. Any insect, rodent, nematode, fungus, weed; or
    2. Any other form of terrestrial or aquatic plant or animal life or virus, bacteria, or other microorganism except viruses, bacteria, or other microorganisms on or in living man or other living animals which the United States Environmental Protection Agency declares to be a pest under Section 25(c)(1) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136w(c)(1), or which the board declares to be a pest under § 2-16-406(a)(1);
  23. “Pesticide” means:
    1. Any substance or mixture of substances intended for preventing, destroying, repelling, or mitigating any pests;
    2. Any substance or mixture of substances intended for use as a plant regulator, defoliant, or desiccant; and
    3. Any substance or mixture of substances intended to be used as a spray adjuvant;
  24. “Plant regulator” means any substance or mixture of substances, intended through physiological action, for accelerating or retarding the rate of growth or rate of maturation or for otherwise altering the behavior of plants or the produce thereof. The term shall not include substances to the extent that they are intended as plant nutrients, trace elements, nutritional chemicals, plant inoculants, and soil amendments;
  25. “Protect health and environment” means protection against any unreasonable adverse effects on the environment;
  26. “Registrant” means a person who has registered any pesticide under the provisions of this subchapter;
  27. “Restricted-use pesticide” means any pesticide or pesticide use classified for restricted use by the Administrator of the United States Environmental Protection Agency;
  28. “Spray adjuvant” means any wetting agent, spreading agent, sticker, deposit builder, adhesive, emulsifying agent, deflocculating agent, water modifier, or similar agent intended to be used with any other pesticide as an aid to the application or to the effect thereof, and which is in a package or container separate from that of the pesticide with which it is to be used;
  29. “State-restricted pesticide” means any pesticide or pesticide use which, when used as directed or in accordance with a widespread and commonly recognized practice, the board determines, subsequent to a hearing, requires additional restrictions for that pesticide or use to prevent unreasonable adverse effects on the environment, including humans, lands, beneficial insects, animals, crops, and wildlife, other than pests;
  30. “Unreasonable adverse effects on the environment” means any unreasonable risk to humans or the environment, taking into account the economic, social, and environmental costs and benefits of the use of any pesticide;
  31. “Weed” means any plant which grows where not wanted; and
  32. “Wildlife” means all living things that are neither human, domesticated, nor, as defined in this subchapter, pests. “Wildlife” shall include, but not be limited to, mammals, birds, and aquatic life.

History. Acts 1975, No. 410, § 4; A.S.A. 1947, § 77-230; Acts 2019, No. 378, § 2.

Amendments. The 2019 amendment repealed (10) and (11).

U.S. Code. The relevant provisions of Pub. L. No. 91-135 referred to in this section were codified as 16 U.S.C. §§ 668cc-1 — 668cc-6 and were repealed effective December 28, 1973. Provisions covering endangered species are generally codified as 16 U.S.C. § 1531 et seq. (Endangered Species Act of 1973.)

2-16-404. Penalties.

  1. Any person who violates any provision of this subchapter or a rule adopted under this subchapter shall be guilty of a violation and upon conviction shall be punished for the first offense by a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) and for the second and any additional offense a fine of not less than five hundred dollars ($500) nor more than two thousand dollars ($2,000).
  2. Any offense committed more than three (3) years after a previous conviction shall be considered as a first offense.

History. Acts 1975, No. 410, § 18; A.S.A. 1947, § 77-244; Acts 2005, No. 1994, § 8; 2019, No. 315, § 9.

Amendments. The 2005 amendment, in (a), substituted “violation” for “misdemeanor” and “punished” for “punishable”.

The 2019 amendment substituted “rule” for “regulation” in (a).

2-16-405. Administration.

  1. This subchapter shall be administered by the State Plant Board.
  2. The administrative functions vested in the board by this subchapter shall be considered to be delegated to the employees of the Department of Agriculture or the department's authorized representatives on behalf of the board.

History. Acts 1975, No. 410, §§ 2, 20; A.S.A. 1947, §§ 77-228, 77-246; Acts 2019, No. 910, § 23.

Amendments. The 2019 amendment rewrote (b).

2-16-406. Powers of State Plant Board.

  1. The State Plant Board is authorized, after due notice and an opportunity for a hearing, to:
    1. Declare as a pest any form of plant or animal life, other than man and other than bacteria, viruses, and other microorganisms on or in living man or other living animals, which is injurious to health or the environment;
    2. Determine whether pesticides registered under the authority of Section 24(c) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136v(c), are highly toxic to man. The definition of “highly toxic” in 16 C.F.R. § 1500.3(b)(6)(i), as issued or hereafter amended, shall govern the board's determination;
    3. Determine pesticides, and quantities of substances contained in pesticides, which are injurious to the environment. The board shall be guided by the United States Environmental Protection Agency regulations in this determination; and
    4. Prescribe regulations requiring any pesticide registered for special local needs to be colored or discolored if it determines that the requirement is feasible and is necessary for the protection of health and the environment.
  2. The board is authorized to inspect pesticides wherever found and may sample and analyze or cause to be analyzed samples thereof, to determine compliance with this subchapter and the regulations adopted hereunder.
  3. The board is authorized, after due notice and a public hearing, to make appropriate regulations where the regulations are necessary for the enforcement and administration of this subchapter. These regulations shall include, but not be limited to, regulations providing for:
    1. The safe handling, transportation, storage, display, distribution, and disposal of pesticides and their containers;
    2. Labeling requirements of all pesticides required to be registered under provisions of this subchapter. The regulations shall not impose any requirements for federally registered labels in addition to or different from those required under the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq.;
    3. Specifying those classes of devices which shall be subject to any provision of § 2-16-410.
  4. For the purpose of uniformity and in order to enter into cooperative agreements, the board may:
    1. Adopt restricted-use pesticides classifications as determined by the United States Environmental Protection Agency. In addition, the board may declare certain pesticides or pesticide uses as state-restricted pesticides when, after investigation and public hearing, it finds and determines the pesticide to be injurious to persons, animals, or vegetation other than the pest or vegetation which it is intended to destroy, or otherwise requires additional restrictions under the conditions set forth in § 2-16-403(29). The sale or distribution of such pesticides in Arkansas or their use in pest control or other operation is prohibited, except in accordance with such rules and regulations as may be made by the board after a public hearing. The rules and regulations may include rules and regulations prescribing the time when and the conditions under which the materials may be used in different areas in the state. The board, in its rules and regulations, may charge inspection and permit fees sufficient to cover the cost of enforcement of this subdivision (d)(1); and
    2. Adopt regulations in conformity with the primary pesticide standards, particularly as to labeling and registration requirements, as established by the United States Environmental Protection Agency or other federal or state agencies.

History. Acts 1975, No. 410, § 9; A.S.A. 1947, § 77-235.

2-16-407. Pesticide registration required.

  1. Each pesticide must have been accepted for registration by the State Plant Board, and the registration must be in force at the time it is sold, offered for sale, or distributed in this state. Registration is not required if a pesticide is shipped from one (1) plant or warehouse to another plant or warehouse operated by the same person and used solely at the plant or warehouse as a constituent part to make a pesticide which is registered under the provisions of this subchapter or if the pesticide is distributed under the provisions of an experimental use permit issued under § 2-16-409 or an experimental use permit issued by the United States Environmental Protection Agency.
  2. The applicant for registration shall file a statement with the board which shall include:
    1. The name and address of the applicant and the name and address of the person whose name will appear on the label, if other than the applicant's;
    2. The name of the pesticide;
    3. Other necessary information required for completion of the board's application for registration form; and
    4. A complete copy of the labeling accompanying the pesticide and a statement of all claims to be made for it, including the directions for use and the use classification as provided in the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq.
  3. The board, when it deems it necessary in the administration of this subchapter, may require the submission of the complete formula of any pesticide, including the active and inert ingredients.
  4. The board may require a full description of the tests made and the results upon which the claims are based on any pesticide not registered under Section 3 of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136a, or on any pesticide on which restrictions are being considered. In the case of renewal of registration, a statement shall be required only with respect to information which is different from that furnished when the pesticide was registered or last reregistered.
  5. The board may prescribe other necessary information by rule.
  6. The applicant desiring to register a pesticide shall pay an annual registration fee as prescribed in the rules of the board for each pesticide registered by the applicant. The annual registration fee shall be no less than sixty dollars ($60.00) for each product registered. All registrations shall expire December 31 each year.
  7. Any registration approved by the board and in effect on December 31 for which a renewal application has been made and the proper fee paid shall continue in full force and effect until such time as the board notifies the applicant that the registration has been approved or denied, in accordance with the provisions of § 2-16-408. Forms for reregistration shall be mailed to registrants at least thirty (30) days before the due date.
  8. Provided the board is certified by the Administrator of the United States Environmental Protection Agency to register pesticides to meet special local needs under Section 24(c) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136v(c), the board shall require information set forth under subsections (b)-(e) of this section and shall register a pesticide if it determines that:
    1. The pesticide's composition is such as to warrant the proposed claims for it;
    2. The pesticide's labeling and other material required to be submitted comply with the requirements of this subchapter;
    3. The pesticide will perform its intended function without unreasonable adverse effects on the environment;
    4. When used in accordance with widespread and commonly recognized practice, the pesticide will not generally cause unreasonable adverse effects on the environment; and
    5. The classification for general or restricted use is in conformity with Section 3(d) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136a(d).
  9. The board shall not make any lack of essentiality a criterion for denying registration of any pesticide. Where two (2) pesticides meet the requirements of this section, one (1) should not be registered in preference to the other.

History. Acts 1975, No. 410, § 6; A.S.A. 1947, § 77-232; Acts 1993, No. 783, § 7; 2019, No. 315, § 10.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (e) and “rules” for “regulations” in the first sentence of (f).

2-16-408. Registration of pesticides for local needs.

  1. Provided the State Plant Board is certified by the Administrator of the United States Environmental Protection Agency to register pesticides for those pesticides formulated to meet special local needs, the board shall consider the following for refusal to register, for cancellation, for suspension, or for legal recourse:
      1. If it does not appear to the board that the pesticide is such as to warrant the proposed claims for it or if the pesticide and its labeling and other material required to be submitted do not comply with the provisions of this subchapter or regulations adopted hereunder, it shall notify the applicant of the manner in which the pesticide, labeling, or other material required to be submitted fails to comply with the provisions of this subchapter so as to afford the applicant an opportunity to make the necessary corrections.
      2. If, upon receipt of the notice, the applicant does not make the required changes, the board may refuse to register the pesticide.
      3. The applicant may request a hearing as provided for in the Arkansas Administrative Procedure Act, § 25-15-201 et seq.;
    1. When the board determines that a pesticide or its labeling does not comply with the provisions of this subchapter or the regulations adopted hereunder, it may cancel the registration of a pesticide after a hearing in accordance with the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.;
    2. When the board determines that there is an imminent hazard, it may on its own motion suspend the registration of a pesticide in conformance with the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq. Hearings shall be held with the utmost possible expedition; and
      1. Any person adversely affected by an order in this section may obtain judicial review of the order by filing in the circuit court, within sixty (60) days after the entry of the order, a petition praying that the order be set aside in whole or in part.
      2. A copy of the petition shall be forthwith transmitted by the clerk of the court to the board, and then the board shall file in the court the record of the proceedings on which it based its order.
      3. The court shall have jurisdiction to affirm or set aside the order complained of in whole or in part.
      4. The findings of the board with respect to questions of fact shall be sustained if supported by substantial evidence when considered on the record as a whole.
      5. Upon application, the court may remand the matter to the board to take further testimony if there are reasonable grounds for the failure to adduce such evidence in the prior hearing.
      6. The board may modify its findings and order by reason of the additional evidence so taken and shall file the additional record and any modification of the findings or order with the clerk of the court.
  2. If the board determines that any federally registered pesticide, with respect to its use in this state, requires further restrictions under § 2-16-406(d)(1), it may refuse to register or cancel or suspend the current registration of the pesticide in order to comply with such rules and regulations as may be adopted under § 2-16-406.

History. Acts 1975, No. 410, § 8; A.S.A. 1947, § 77-234.

2-16-409. Experimental-use permits.

  1. Provided the State Plant Board is authorized by the Administrator of the United States Environmental Protection Agency to issue experimental-use permits, the board may:
    1. Issue an experimental-use permit to any person applying for an experimental-use permit if it determines that the applicant needs that permit in order to accumulate information necessary to register a pesticide under § 2-16-407;
    2. Refuse to issue an experimental-use permit if it determines that the pesticide applications to be made under the proposed terms and conditions may cause unreasonable adverse effects on the environment;
    3. Prescribe terms, conditions, and a period of time for the experimental-use permit which shall be under the supervision of the board; and
    4. Revoke any experimental-use permit at any time if it finds that the permit's terms or conditions are being violated or that its terms and conditions are inadequate to avoid unreasonable adverse effects on the environment.
  2. Regulations adopted under this subchapter as to experimental-use permits as authorized by the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq., shall not be inconsistent with the requirements of the Federal Insecticide, Fungicide, and Rodenticide Act and regulations promulgated thereunder.

History. Acts 1975, No. 410, § 7; A.S.A. 1947, § 77-233.

2-16-410. Misbranded pesticides.

A pesticide is misbranded:

  1. If its labeling bears any statement, design, or graphic representation relative to the pesticide or to its ingredients which is false or misleading in any particular;
  2. If it is an imitation of or is distributed under the name of another pesticide;
  3. If any word, statement, or other information required to appear on the label or labeling is not prominently placed thereon with such conspicuousness, compared with other words, statements, designs, or graphic matter in the labeling, and in such terms, as to render it likely to be read and understood by the ordinary individual under customary conditions of purchase and use;
  4. If the labeling does not contain a statement of the federal use classification under which the product is registered;
  5. If the labeling accompanying it does not contain directions for use which are necessary for effecting the purpose for which the product is intended, and the directions if complied with, together with any requirements imposed under Section 3(3) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136a, are adequate to protect health and the environment;
  6. If the label does not bear:
    1. The name, brand, or trademark under which the pesticide is distributed;
    2. An ingredient statement on that part of the immediate container and on the outside container and wrapper of the retail package, if there is one, through which the ingredient statement on the immediate container cannot be clearly read, which is presented or displayed under customary conditions of purchase. The ingredient statement may appear prominently on another part of the container as permitted under Section 2(q)(2)(A) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136(q)(2)(A), if the size or form of the container makes it impracticable to place it on the part of the retail package which is presented or displayed under customary conditions of purchase;
    3. A warning or caution statement which may be necessary and which, if complied with together with any requirements imposed under section 3(d) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136a(d), would be adequate to protect the health and environment;
    4. The net weight or measure of the content;
    5. The name and address of the manufacturer, registrant, or person for whom manufactured; and
    6. The United States Environmental Protection Agency registration number assigned to each establishment in which it was produced and the United States Environmental Protection Agency registration number assigned to the pesticide, if required by regulations under the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq.;
  7. If that pesticide contains any substance in quantities highly toxic to man unless the label bears, in addition to other label requirements:
    1. The skull and crossbones;
    2. The word “POISON” in red prominently displayed on a background of distinctly contrasting color; and
    3. A statement of a practical treatment, first aid or otherwise, to be used in case of poisoning by the pesticide;
  8. If the pesticide container does not bear a registered label; and
  9. If a spray adjuvant label fails to state the type or function of the functioning agents.

History. Acts 1975, No. 410, § 5; A.S.A. 1947, § 77-231.

2-16-411. Unlawful actions — Exceptions.

    1. It is unlawful for any person to distribute in this state any of the following:
      1. Any pesticide which has not been registered under:
        1. The provisions of this subchapter; or
        2. The provisions of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq.;
      2. Any pesticide if any of the claims made for it or any of the directions for its use or other labeling differs from the representations made in connection with its registration, or if the composition of a pesticide differs from its composition as represented in connection with its registration. A change in the labeling or formulation of a pesticide may be made within a registration period without requiring reregistration of the product if the registration is amended to reflect the change and if the change will not violate any provision of the Federal Insecticide, Fungicide, and Rodenticide Act or this subchapter;
      3. Any pesticide unless it is in the registrant's or the manufacturer's unbroken immediate container and there is affixed to the container, and to the outside container or wrapper of the retail package if there is one through which the required information on the immediate container cannot be clearly read, a label bearing the information required in this subchapter and the regulations adopted under this subchapter. The State Plant Board may designate that certain specified economic poisons may be sold by the manufacturers or dealers in bulk, in which case the label information required and any other statements required by this subchapter must be stated in or attached to the invoice. In addition, a copy of the invoice must be given to the purchaser at the time the economic poison is delivered;
      4. Any pesticide which has not been colored or discolored under the provisions of § 2-16-406(a)(4) or of Section 25(c)(5) of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136w(c)(5);
      5. Any pesticide which is adulterated or misbranded or any device which is misbranded; and
      6. Any pesticide in containers which are unsafe due to damage.
    2. However, this subsection shall not apply to:
      1. Any carrier while lawfully engaged in transporting a pesticide within this state if the carrier shall, upon request, permit the board to copy all records showing the transactions in and movement of the pesticides or devices;
      2. Public officials of this state and the federal government while engaged in the performance of their official duties in administering state or federal pesticide laws or regulations or while engaged in pesticide research;
      3. The manufacturer or shipper of a pesticide for experimental use only by or under the supervision of an agency of this state or of the federal government authorized by law to conduct research in the field of pesticides if the manufacturer or shipper holds a valid experimental-use permit as provided for by § 2-16-409 or by the United States Environmental Protection Agency; or
      4. Any person who ships a substance or mixture of substances being put through tests, in which the purpose is only to determine its value for pesticide purposes or to determine its toxicity or other properties, from which the user does not expect to receive any benefit in pest control from its use.
  1. It shall be unlawful for any person to:
    1. Detach, alter, deface, or destroy, wholly or in part, any label or labeling provided for in this subchapter or in regulations adopted under this subchapter or to add any substance to or take any substance from a pesticide in a manner that may defeat the purpose of this subchapter or the regulations adopted hereunder;
    2. Use for his or her own advantage or to reveal, other than to the board, to properly designated state or federal officials, to employees of the state or federal executive agencies, to the courts of the state in response to a subpoena, to physicians, or in emergencies to pharmacists and other qualified persons for use in the preparation of antidotes, any information relative to formulas of products acquired by authority of § 2-16-407 or any information judged by the board as containing or relating to trade secrets or commercial or financial information obtained by authority of this subchapter and marked as privileged or confidential by the registrant;
    3. Handle, transport, store, display, or distribute pesticides in such a manner as to endanger man and his or her environment or to endanger food, feed, or any other products that may be transported, stored, displayed, or distributed with the pesticides;
    4. Dispose of, discard, or store any pesticides or pesticide containers in such a manner as to cause injury to humans, vegetation, crops, livestock, wildlife, or beneficial insects or to pollute any water supply or waterway; or
    5. Refuse or otherwise fail to comply with the provisions of this subchapter, the regulations adopted hereunder, or any lawful order of the board.
  2. No person shall transport, store, or dispose of any pesticide or pesticide containers in such a manner as to cause injury to humans, vegetation, crops, livestock, wildlife, or beneficial insects or to pollute any waterway in a way harmful to any wildlife therein. The board may promulgate rules and regulations governing the storing and disposal of pesticides or pesticide containers. In determining these standards, the board shall take into consideration any regulations issued by the United States Environmental Protection Agency.
  3. No pesticide or device shall be deemed in violation of this subchapter when intended solely for export to a foreign country, and when prepared or packed according to the specification or directions of the purchaser. If not so exported, all the provisions of this subchapter shall apply.

History. Acts 1975, No. 410, §§ 10, 11; A.S.A. 1947, §§ 77-236, 77-237.

2-16-412. Enforcement.

    1. The sampling and examination of pesticides or devices shall be made by the State Plant Board for the purpose of determining whether they comply with the requirements of this subchapter.
    2. The board is authorized to enter any distributor's premises, including any vehicle of transport, at all reasonable times in order to have access to pesticides or devices packaged or labeled for distribution and to collect samples of the contents, containers, or labeling for the pesticides or devices.
    3. If an analysis is made of the samples, a copy of the results of the analysis shall be furnished promptly to the owner, operator, or agent in charge.
    4. If it appears from the examination that a pesticide or device fails to comply with the provisions of this subchapter or rules adopted hereunder and the board contemplates instituting criminal proceedings against any person, the board shall cause appropriate notice to be given to that person.
    5. Any person so notified shall be given an opportunity within a reasonable time to present his or her views, either orally or in writing, with regard to the contemplated proceedings.
    6. If thereafter, in the opinion of the board, it appears that the provisions of this subchapter or rules adopted hereunder have been violated by the person, the board shall refer a copy of the results of the analysis or the examination of the pesticide or device to the prosecuting attorney for the county in which the violation occurred.
    1. For the purpose of carrying out the provisions of this subchapter, the board may enter upon any public or private premises at reasonable times in order to inspect storage or disposal areas or sample pesticides being applied or to be applied.
    2. Should the board be denied access to any premises or other areas where access was sought for the purposes set forth in this subchapter, it may apply to any court of competent jurisdiction for a search warrant authorizing access to those premises or other areas for the purposes set forth in this subchapter. The court may, upon such application, issue the search warrant for the purposes requested.
  1. The board, with or without the aid and advice of the prosecuting attorney, is charged with the duty of enforcing the requirements of this subchapter and any rules issued thereunder. In the event a prosecuting attorney refuses to act on behalf of the board, the Attorney General may so act.
  2. The board is authorized to apply to any court of competent jurisdiction for, and the court upon hearing and for cause shown may grant, a temporary or permanent injunction. This injunction shall restrain any person from violating any provisions of this subchapter or of the rules made under authority of this subchapter and shall be without bond.
  3. Nothing in this subchapter shall be construed as requiring the board to report minor violations of this subchapter for prosecution or for the institution of condemnation proceedings when it believes that the public interest will be served best by a suitable notice of warning in writing.

History. Acts 1975, No. 410, § 12; A.S.A. 1947, § 77-238.

2-16-413. Issuance of stop-sale, etc., order.

  1. When the State Plant Board has reasonable cause to believe a pesticide or device is being distributed, stored, transported, or used in violation of any of the provisions of this subchapter, or of any of the rules prescribed under the authority of this subchapter, it may issue and serve a written stop-sale, use, or removal order upon the owner or custodian of the pesticide or device.
  2. If the owner or custodian is not available for service of the order upon him or her, the board may attach the order or other suitable marking to the pesticide or device and notify the owner or custodian and the registrant.
  3. The pesticide or device shall not be sold, used, or removed until the provisions of this subchapter have been complied with and until the pesticide or device has been released in writing under conditions specified by the board or the violation has been otherwise disposed of as provided in this subchapter by a court of competent jurisdiction.

History. Acts 1975, No. 410, § 13; A.S.A. 1947, § 77-239.

2-16-414. Hearing on stop-sale, etc., order.

    1. After service of a stop-sale, use, or removal order is made upon any person, either that person, the registrant, or the State Plant Board may file an action in a court of competent jurisdiction in the county in which a violation of this subchapter or rules adopted hereunder is alleged to have occurred for an adjudication of the alleged violation.
    2. The court in the action may issue temporary or permanent injunctions, mandatory or restraining orders, and such intermediate orders as it deems necessary or advisable.
    3. The court may order condemnation of any pesticide or device which does not meet the requirements of this subchapter or rules adopted hereunder.
    1. If the pesticide or device is condemned, it shall, after entry of decree, be disposed of by destruction or sale as the court directs.
    2. If the pesticide or device is sold, the proceeds, less costs including legal costs, shall be paid to the State Treasury as provided in § 2-16-419.
    3. The pesticide or device shall not be sold contrary to the provisions of this subchapter or rules adopted hereunder.
    4. Upon payment of costs and execution and delivery of a good and sufficient bond conditioned that the pesticide or device shall not be disposed of unlawfully, the court may direct that the pesticide or device be delivered to its owner for relabeling, reprocessing, removing from the state, or otherwise bringing the product into compliance.
  1. When a decree of condemnation is entered against the pesticide or device, court costs, fees, storage, and other proper expenses shall be awarded against the person, if any, appearing as claimant of the pesticide.
  2. No state court shall allow the recovery of damages from administrative action taken or for stop-sale, use, or removal if the court finds that there was probable cause for such action.

History. Acts 1975, No. 410, §§ 14, 18; A.S.A. 1947, §§ 77-240, 77-244.

2-16-415. Subpoenas.

The State Plant Board may issue subpoenas to compel the attendance of witnesses or production of books, documents, and records in the state in any hearing affecting the authority or privilege granted by a registration issued under the provisions of this subchapter.

History. Acts 1975, No. 410, § 17; A.S.A. 1947, § 77-243.

2-16-416. Intergovernmental cooperation.

The State Plant Board may cooperate, receive grants-in-aid, and enter into cooperative agreements or contracts with any agency of the federal government or this state or its subdivisions or with any agency of another state, in order to:

  1. Secure uniformity of rules;
  2. Enter into cooperative agreements with the United States Environmental Protection Agency to register pesticides under the authority of this subchapter and the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq.; and
  3. Cooperate in the enforcement of the federal pesticide control laws through the use of state or federal personnel and facilities and implement cooperative enforcement programs, including, but not limited to, the registration and inspection of establishments.

History. Acts 1975, No. 410, § 15; A.S.A. 1947, § 77-241.

2-16-417. Publication of information.

The State Plant Board may publish, in such form as it may deem proper, results of analyses based on official samples as compared with the analyses guaranteed and information concerning the distribution of pesticides.

History. Acts 1975, No. 410, § 16; A.S.A. 1947, § 77-242.

2-16-418. Protection of trade secrets and other information.

  1. In submitting data required by this subchapter, the applicant may:
    1. Clearly mark any portions thereof which in his or her opinion are trade secrets or commercial or financial information; and
    2. Submit such marked material separately from other material required to be submitted under this subchapter.
  2. Notwithstanding any other provision of this subchapter, the State Plant Board shall not make public any information which, in its judgment, contains or relates to trade secrets or commercial or financial information obtained from a person and is privileged or confidential, except that, when necessary to carry out the provisions of this subchapter, information relating to formulas of products acquired by authorization of this subchapter may be revealed to any state or federal agency consulted or in findings of fact issued by the board.
    1. If the board proposes to release for inspection information which the applicant or registrant believes to be protected from disclosure under subsection (b) of this section, it shall notify the applicant or registrant, in writing, by certified mail.
    2. The board shall not, after mailing the notice as provided in this subsection, make available for inspection the data until thirty (30) days after receipt of the notice by the applicant or registrant.
    3. During this period, the applicant or registrant may institute an action in an appropriate court for a declaratory judgment as to whether the information is subject to protection under subsection (b) of this section.

History. Acts 1975, No. 410, § 19; A.S.A. 1947, § 77-245.

2-16-419. Disposition of funds.

All moneys received by the State Plant Board under the provisions of this subchapter and the rules adopted hereunder shall be deposited into the State Plant Board Fund of the State Treasury and be used for carrying out the provisions of this subchapter.

History. Acts 1975, No. 410, § 21; A.S.A. 1947, § 77-247.

Subchapter 5 — Johnson Grass Control and Eradication

Effective Dates. Acts 1967, No. 186, § 14: Feb. 28, 1967. Emergency clause provided: “It is hereby found and determined by the General Assembly that many counties in this state are plagued with an acute and rapidly progressing Johnson Grass problem; that the land upon which such grass grows decreases in value and fails to produce an adequate yield of crops, thereby affecting the economy of this state; that there is no existing program to combat this problem in these counties; and that in order to control and eradicate Johnson Grass and to insure record yields of crops on all lands in this state, it is necessary that this act become effective immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1975, No. 287, § 12: Mar. 3, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Johnson Grass Control and Eradication Law of this state is in urgent need of clarification and modification to enable the various areas of the state to take advantage of its provisions to alleviate the problem of Johnson Grass in the state, and that this act is designed to so clarify and modify said laws and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Cross References. State Plant Board Operations and Facilities Construction Fund, § 2-16-108.

2-16-501. Title.

This subchapter shall be known as the “Johnson Grass Control and Eradication Act”.

History. Acts 1967, No. 186, § 1; 1975, No. 287, § 1; A.S.A. 1947, § 77-1701.

2-16-502. Applicability.

The provisions of this subchapter shall be applicable to and shall be enforced only in those areas of this state established as Johnson grass control and eradication districts in the manner authorized herein. For the purposes of this subchapter, a district may consist of one (1) or more contiguous townships in one (1) or more contiguous counties, but in no event shall a single district lie in more than three (3) counties.

History. Acts 1967, No. 186, § 2; 1975, No. 287, § 2; A.S.A. 1947, § 77-1702.

2-16-503. Penalty.

  1. Any landowner or any person having control of any land in a Johnson grass control and eradication district who fails or refuses to control or eradicate Johnson grass on his or her lands shall be guilty of a violation.
    1. Upon conviction, an offender shall be subject to a fine of not less than fifty dollars ($50.00) nor more than one hundred dollars ($100) for each violation.
    2. Each day a violation shall exist or continue shall constitute a separate offense.

History. Acts 1967, No. 186, § 8; 1975, No. 287, § 8; A.S.A. 1947, § 77-1708; Acts 2005, No. 1994, § 9.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (a).

2-16-504. Petition to establish district.

    1. Upon the petition of fifty (50) landowners filed with the county court or courts in which a proposed district lies, the county court or courts shall declare that a threat to the agricultural economy of the proposed district exists by reason of the uncontrolled growth of Johnson grass.
    2. The county court or courts shall cause the question of whether the district shall be established and this subchapter shall be enforced in the district to be submitted to the landowners of the proposed district.
    1. Immediately upon the submission of the petition to the county court or courts, the court or courts shall issue a proclamation calling the election in accordance with § 7-11-201 et seq. and notify the county board or boards of election commissioners in writing. The election shall be held on a date in accordance with § 7-11-201 et seq. but in no event more than ninety (90) days following publication of the proclamation.
    2. This special election shall be held for the purpose of submitting to the landowners of the proposed district the question of whether the district shall be established and the provisions of this subchapter shall be enforced in the district.

History. Acts 1967, No. 186, § 3; 1975, No. 287, § 3; A.S.A. 1947, § 77-1703; Acts 2005, No. 2145, § 1; 2007, No. 1049, § 1; 2009, No. 1480, § 1.

Amendments. The 2005 amendment redesignated former (b) as present (b)(1)(A) and (B); substituted “thirty (30)” for “forty-five (45)” in (b)(1)(A); and added (b)(2).

The 2007 amendment rewrote (b).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” twice in (b)(1).

2-16-505. Establishment of district.

  1. When the question as to whether this subchapter shall be enforced in any district is submitted to the landowners of the district at any special election called for that purpose, the question shall be submitted to the landowners in substantially the following form on the ballot:
    1. Only qualified electors of the proposed district who are owners of real property in the proposed district shall be permitted to vote in the election.
    2. Every person voting in the election shall be required to sign an affidavit that the person is an owner of real property in the proposed district.
    1. If in any special election a majority of the landowners voting on the question shall vote against the establishment of the district, the question shall not again be submitted to the landowners of the district for one (1) year.
      1. If at the special election the majority of the landowners voting on the question shall vote for the establishment of the district, then the vote shall be entered on the record, and the county clerk or clerks shall notify the judge or judges who shall declare the designated area to be a Johnson grass control and eradication district and shall cause notice to be published in a newspaper having a general circulation in the electing district.
      2. The notice shall state that the district has been established, that the provisions of this subchapter shall be applicable in the district, and that all landowners in the district shall take steps to control and eradicate Johnson grass on all lands owned by them or under their control, in accordance with this subchapter.
      1. Within ten (10) days after the publication of the notice, the county judge or judges in which a district lies shall appoint a district Johnson grass control board composed of three (3) landowners in the district to advise and assist in the administration of this subchapter in that district.
        1. If the district is in a single county, the county judge of that county shall appoint the three (3) members of the board.
        2. If a district lies within two (2) counties, the county judge in which the greater acreage of the district lies shall appoint two (2) members of the board, and the county judge of the other county in which a portion of the district lies shall appoint one (1) member.
        3. In the event a district lies within three (3) counties, the county judge of each county in which a portion of the district lies shall appoint one (1) member to the board.
      1. The district Johnson grass control board shall select and employ a district Johnson grass control and eradication supervisor, who shall be a resident of the district and who shall have a thorough knowledge of ways and means of controlling and eradicating Johnson grass.
      2. The supervisor, through the direction of the board, shall be charged with the administration and enforcement of this subchapter in the district.
        1. The supervisor shall be a full-time employee of the district and shall receive such salary and other compensation and expenses as shall be determined by the board.
        2. The county court in each county in which a portion of a district lies shall provide from the county general fund, on a basis proportional to the amount of district acreage in the county to the total acreage in the district, such funds as shall be sufficient to pay the salary of the supervisor and to otherwise carry out the purposes of this subchapter in the district.

FOR THE ESTABLISHMENT OF A JOHNSON GRASS CONTROL AND ERADICATION DISTRICT COMPOSED OF AGAINST THE ESTABLISHMENT OF A JOHNSON GRASS CONTROL AND ERADICATION DISTRICT COMPOSED OF

Click to view form.

History. Acts 1967, No. 186, § 4; 1975, No. 287, § 4; A.S.A. 1947, § 77-1704.

2-16-506. Powers and duties of district supervisors.

  1. The district Johnson grass control and eradication supervisor of each district shall have and exercise the following powers and duties, among others, regarding the Johnson grass eradication program:
    1. To supervise the eradication of Johnson grass;
    2. To inspect property in the district to determine whether this subchapter is being complied with by those owning or having control of such lands;
    3. To inform himself or herself of the nature of Johnson grass and to follow the recommendations of the Director of the State Plant Board and the College of Agriculture of the University of Arkansas as to the best methods of controlling, eradicating, and preventing the dissemination of Johnson grass; and
    4. Through the director, to enter into agreements with the state and federal agencies for the cooperative control of Johnson grass.
  2. The supervisor shall periodically inspect all lands in the district. Annually and at such other times as may be required by the district board the supervisor shall make a complete report to the district board and the director of the progress being made in the district in the control and eradication of Johnson grass.

History. Acts 1967, No. 186, § 6; 1975, No. 287, § 6; A.S.A. 1947, § 77-1706.

2-16-507. State assistance.

The Director of the State Plant Board is authorized to cooperate with and assist the district Johnson grass control board and the supervisor in the control and eradication of Johnson grass in the district when requested to do so by the board or the supervisor.

History. Acts 1967, No. 186, § 7; 1975, No. 287, § 7; A.S.A. 1947, § 77-1707.

2-16-508. Civil remedies.

  1. Notwithstanding the criminal penalty for the violation of this subchapter, the existence or growth of Johnson grass in a Johnson grass control and eradication district is declared to be a public and common nuisance, and it is the duty of the prosecuting attorney in whose district the offense occurs to bring an action to enjoin the nuisance.
  2. Any landowner whose land is adjacent to or within one hundred feet (100') of land on which the Johnson grass nuisance is permitted or maintained may bring a civil action for injunction against any person permitting or maintaining the nuisance and shall, in addition to injunctive relief, be entitled to recover double the actual damages sustained as a result of the nuisance as well as a reasonable attorney's fee and cost of bringing the action.

History. Acts 1967, No. 186, § 10; 1975, No. 287, § 10; A.S.A. 1947, § 77-1710.

2-16-509. Duties of landowners.

It shall be the duty of the State of Arkansas or any department thereof, any public utility, railroad, levee and drainage district, county, or any municipality, and every other person, firm, corporation, or association owning or having control over any lands in a Johnson grass control and eradication district to:

  1. Control and eradicate Johnson grass on all lands, rights-of-way, and easements owned, occupied, or controlled by them;
  2. Employ methods approved by the Director of the State Plant Board for control and eradication of Johnson grass as the district board shall direct; and
  3. Comply with all orders and rules of the district board and the director.

History. Acts 1967, No. 186, § 5; 1975, No. 287, § 5; A.S.A. 1947, § 77-1705.

2-16-510. Acceptance of gifts, etc.

The district Johnson grass control board is authorized to accept gifts, grants, and donations for use in carrying out the purpose of controlling and eradicating Johnson grass in the district.

History. Acts 1967, No. 186, § 9; 1975, No. 287, § 9; A.S.A. 1947, § 77-1709.

2-16-511. Abolition of district.

  1. Any district established under the provisions of this subchapter may be abolished upon a majority vote of the landowners of the district at a special election called for that purpose.
  2. The question of abolishing a district shall be submitted to the landowners of the district in the same manner as is provided in § 2-16-502.

History. Acts 1967, No. 186, § 11; 1975, No. 287, § 11; A.S.A. 1947, § 77-1711.

Subchapter 6 — Arkansas Boll Weevil Suppression Eradication Act

Effective Dates. Acts 1991, No. 710, § 22: Mar. 22, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that the boll weevil is not only a pest but that it threatens the growth of cotton in this state and costs many thousands of dollars in damages annually; that the purpose of this act is to establish a program to control the boll weevil and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary to the public peace, health and welfare shall be in effect from the date of its passage and approval.”

Acts 1995, No. 529, § 8: Mar. 6, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Arkansas boll weevil suppression program has been and continues to be a valuable tool in controlling the boll weevil population in the state; that the boll weevil suppression program law is in need of minor revisions to promote and strengthen the program; that such revisions are urgently needed to assure the continued success of the program and that this act is designed to effect those revisions and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 317, § 8: Mar. 3, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 10 of the First Extraordinary Session of 1995 abolished the Joint Interim Committee on Agriculture and Economic Development and in its place established separate House and Senate Committees; that various sections of the Arkansas Code refer to the Joint Interim Committee on Agriculture and Economic Development and should be corrected to refer to the House and Senate Interim Committees; that this act so provides; and that this act should go into effect immediately in order to make the laws compatible as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2003, No. 1726, § 3: Apr. 22, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the representation on the board of directors of the certified crop growers' organization should be proportional to the acreage of cotton within each eradication zone; that this act so provides; and that this act should go into effect as soon as possible in order to provide appropriate representation of the cotton growers within each zone. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

2-16-601. Title.

This subchapter shall be known as the “Arkansas Boll Weevil Suppression Eradication Act”.

History. Acts 1991, No. 710, § 1.

Case Notes

Constitutionality.

There was no equal protection violation stemming from the fact that the Arkansas Boll Weevil Suppression Eradication Act, § 2-16-601 et seq., authorized cotton growers who elected to implement an eradication program to later elect to modify or recall that program; the Act created two separate means for achieving the legitimate purpose of eradicating the boll weevil, one for the growers and one for the Arkansas State Plant Board, and the Board's power to impose an eradication program was independent of any action taken by the growers, thus, all the commercial cotton growers of Arkansas were subject to the same authority. Rose v. Ark. State Plant Bd., 363 Ark. 281, 213 S.W.3d 607 (2005).

2-16-602. Declaration of policy — Purpose — Construction.

  1. The General Assembly has found and determined and does hereby declare that the boll weevil is a public nuisance, a pest, and a menace to the cotton industry. Due to the interstate nature of the boll weevil infestation, it is necessary to secure the cooperation of cotton growers and other state and federal governments to carry out a program of boll weevil suppression or eradication.
  2. The purpose of this subchapter is to secure the suppression or eradication of the boll weevil and to provide for certification of a cotton growers' organization to cooperate with state and federal agencies in the administration of any available cost-sharing programs for the suppression or eradication of the boll weevil.
  3. This subchapter should be liberally construed to achieve the purposes provided in this section.

History. Acts 1991, No. 710, § 2; 1997, No. 330, § 1.

2-16-603. Definitions.

As used in this subchapter:

    1. “Assessment” means the amount charged to each cotton grower to finance, in whole or part, a program to suppress or eradicate the boll weevil in this state.
    2. The grower's charge will be calculated on a per-acre basis;
  1. “Boll weevil” means Anthonomus grandis Boheman in any state of development;
  2. “Certificate” means a document issued or authorized by the State Plant Board indicating that a regulated article is not contaminated with boll weevils;
  3. “Cotton” means any cotton plant or cotton plant product upon which the boll weevil is dependent for completion of any portion of its life cycle;
  4. “Cotton grower” means any person, other than a cash rent landlord, who is engaged in or has an economic risk in the business of producing, or causing cotton to be produced, for market;
  5. “Host” means any plant or plant product upon which the boll weevil is dependent for completion of any portion of its life cycle;
  6. “Infested” means actually infested with a boll weevil or so exposed to infestation that it would be reasonable to believe that an infestation exists;
  7. “Permit” means a document issued or authorized by the board to provide for the movement of regulated articles to restricted designations for limited handling, utilization, or processing;
  8. “Person” means any individual, partnership, corporation, company, society, or association, or other business entity;
  9. “Regulated article” means any article of any character carrying or capable of carrying the boll weevil, including, but not limited to, cotton plants, seed cotton, cottonseed, other hosts, gin trash, gin equipment, mechanical cotton pickers, and other equipment associated with cotton production, harvesting, or processing; and
  10. “State Plant Board” means the agricultural plant regulatory agency of the State of Arkansas.

History. Acts 1991, No. 710, § 3; 1997, No. 330, § 2.

2-16-604. Criminal penalties.

  1. Any person who shall violate any of the provisions of this subchapter or the rules promulgated hereunder, or who shall alter, forge, or counterfeit, or use without authority any certificate or permit or other document provided for in this subchapter or in the rules promulgated hereunder, shall be guilty of a Class C misdemeanor.
  2. Any person who shall, except in compliance with the rules of the State Plant Board, move any regulated article into this state from any other state which the board found in the rules is infested by the boll weevil shall be guilty of a Class C misdemeanor.

History. Acts 1991, No. 710, § 11.

2-16-605. Rules.

    1. The State Plant Board may promulgate rules restricting the pasturage of livestock, entry by persons, and location of honeybee colonies, or other activities affecting the boll weevil eradication program in any premises in an eradication zone which have been or are to be treated with pesticides or otherwise treated to cause the eradication of the boll weevil, or in any other area that may be affected by such treatments.
    2. The board may also adopt such other rules as it deems necessary to further effectuate the purposes of this subchapter.
  1. All rules promulgated under this subchapter shall be reviewed by the House Committee on Agriculture, Forestry, and Economic Development and the Senate Committee on Agriculture, Forestry, and Economic Development or appropriate subcommittees of the House Committee on Agriculture, Forestry, and Economic Development and the Senate Committee on Agriculture, Forestry, and Economic Development.

History. Acts 1991, No. 710, §§ 10, 18; 1997, No. 317, § 2.

2-16-606. Cooperative programs authorized.

The State Plant Board is hereby authorized to carry out programs to suppress or eradicate the boll weevil in this state. The board is authorized to cooperate with any agency of the federal government, any state, any other agency in this state, or any person engaged in growing, processing, marketing, or handling cotton, or any group of such persons in this state, in programs to effectuate the purposes of this subchapter and may enter into written agreements to effectuate such purposes. Such agreements may provide for cost sharing and for division of duties and responsibilities under this subchapter and may include other provisions generally to effectuate the purposes of this subchapter.

History. Acts 1991, No. 710, § 4.

2-16-607. Entry of premises — Suppression or eradication activities — Inspections.

  1. The State Plant Board, or its authorized representatives, shall have authority to enter cotton fields, cotton processing facilities, and other premises in order to carry out suppression or eradication activities, including, but not limited to, treatment with pesticides, monitoring, and destruction of growing cotton or other host plants, as may be necessary to carry out the provisions of this subchapter.
  2. The board shall have authority to make inspection of any fields or premises in this state and any property located therein or thereon for the purpose of determining whether such property is infested with the boll weevil. Such inspection and other activities may be conducted in a reasonable manner without a warrant at any reasonable daylight hour falling between sunrise and sunset.
  3. Any judge of this state will, within his or her jurisdiction, and upon proper cause shown, issue a warrant giving the board the right of entry to any premises for the purpose of carrying out the provisions of this section or other activities authorized by this subchapter.

History. Acts 1991, No. 710, § 5; 1993, No. 854, § 1.

2-16-608. Reports.

Every person growing cotton in this state shall furnish to the State Plant Board, or its designated representative, on forms supplied by the board or its cooperators, such information as the board may require concerning the size and location of all commercial cotton fields and of noncommercial patches of cotton grown as ornamentals or for other purposes.

History. Acts 1991, No. 710, § 6; 1993, No. 854, § 2.

2-16-609. Quarantine.

  1. The State Plant Board is authorized to promulgate rules quarantining this state, or any portion thereof, and governing the storage or other handling in the quarantined areas of regulated articles and the movement of regulated articles into or from such areas. The board shall determine when such action is necessary, or appears reasonably necessary, to prevent or retard the spread of the boll weevil.
  2. The board is also authorized to promulgate rules governing the movement of regulated articles from other states or portions thereof into this state when such state is known to be infested with the boll weevil. The promulgation of these rules shall conform in all aspects to the Arkansas Administrative Procedure Act, § 25-15-201 et seq., as amended, and sound principles of quarantines.

History. Acts 1991, No. 710, § 7.

2-16-610. Designation of eradication zones — Prohibition of planting of cotton — Participation in suppression eradication program — Penalties.

  1. The State Plant Board may designate by rule one (1) or more areas of this state as eradication zones where boll weevil eradication programs will be undertaken.
    1. The board may promulgate reasonable rules regarding areas where cotton cannot be planted within an eradication zone when there is reason to believe it will jeopardize the success of the program or present a hazard to public health or safety.
    2. The board may issue rules prohibiting the planting of noncommercial cotton in such eradication zones, and requiring that all growers of commercial cotton in the eradication zones participate in a program of boll weevil eradication including cost sharing as prescribed in the rules.
  2. Notice of the prohibition and requirement shall be given by publication for one (1) day each week for three (3) successive weeks in a newspaper having general circulation in the affected area.
    1. The board may set by rule a reasonable schedule of penalty fees to be assessed when growers in designated eradication zones do not meet the requirements of rules issued by the board with respect to reporting of acreage and participation in cost sharing as prescribed by rule.
    2. The penalty fees shall not exceed a charge of twenty-five dollars ($25.00) per acre per year. Any such penalty is in addition to any assessments otherwise due, which assessments shall also remain payable.
    1. When a grower fails to meet the requirements of rules promulgated by the board, the board in eradication zones may destroy cotton not in compliance with such rules.
    2. Cost incurred by the board shall be assessed against the grower.

History. Acts 1991, No. 710, § 8; 1997, No. 330, §§ 3, 4; 2019, No. 315, §§ 11, 12.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (a) and twice in (d)(1).

Case Notes

Authority of Board.

Subdivision (b)(2) of this section specifically authorized the State Plant Board to issue regulations requiring commercial cotton growers to participate in and share the costs of an eradication program, and there was no limiting language in this section or § 2-16-614 making the Board's authority dependent upon referendum approval; thus, the court rejected the growers' claim that a referendum under § 2-16-614 was required before any assessment for the costs of the eradication program could be levied under this section. Rose v. Ark. State Plant Bd., 363 Ark. 281, 213 S.W.3d 607 (2005).

2-16-611. Destruction or treatment of volunteer or other noncommercial cotton in eradication zones — Liability.

  1. The State Plant Board shall have authority to destroy, or, at its discretion, cause to be treated with pesticides, volunteer or other noncommercial cotton and to establish procedures for the purchase and destruction of commercial cotton in eradication zones when the board deems such action necessary to effectuate the purposes of this subchapter.
    1. No payment shall be made by the board to the owner or lessee for the destruction or injury of any cotton which was planted in an eradication zone after publication of notice as provided in this subchapter, or was otherwise handled in violation of this subchapter, or the rules adopted pursuant thereto.
    2. However, the board shall pay for losses resulting from the destruction of cotton which was planted in such zones before promulgation of such notice.

History. Acts 1991, No. 710, § 9.

2-16-612. Certification of cotton growers' organization — Requirements.

  1. The State Plant Board may certify a cotton growers' organization for the purpose of entering into agreements with the State of Arkansas, other states, the federal government, and such other parties as may be necessary to carry out the purposes of this subchapter.
    1. In order to be eligible for certification by the State Plant Board, the cotton growers' organization must demonstrate to the satisfaction of the State Plant Board that:
      1. It is a nonprofit organization and could qualify as a tax-exempt organization under § 501(a) of the Internal Revenue Code of 1986, as amended.
      2. Membership in the organization will consist of all cotton growers in an eradication zone.
    2. The organization shall have only one (1) class of members with each member entitled to only one (1) vote.
  2. The organization's board of directors shall be composed as follows:
    1. Two (2) Arkansas cotton growers recommended by the State Plant Board, to be appointed by the Governor;
    2. Three (3) Arkansas cotton growers recommended by the Arkansas Farm Bureau Federation, to be appointed by the Governor;
    3. Three (3) Arkansas cotton growers recommended by the Agricultural Council of Arkansas, to be appointed by the Governor;
    4. One (1) representative of state government from this state recommended by the State Plant Board, to be appointed by the Governor; and
    5. The cochairs of the University of Arkansas Boll Weevil Eradication Technical Advisory Committee will serve as ex officio members of the cotton growers' organization board to serve in an advisory capacity.
    1. All books and records of accounts and minutes of proceedings of the organization shall be available for inspection or audit by the board at any reasonable time.
    2. Employees or agents of the growers' organization who handle funds of the organization shall be adequately bonded in an amount to be determined by the State Plant Board.
    1. In addition to any authority granted the certified cotton growers' organization, the organization may borrow funds from any bona fide lender, including any state entity or authority, instruct the Arkansas Development Finance Authority to issue bonds under § 15-5-101 et seq., or to issue bonds in any other appropriate manner, any of which credit arrangements may be secured by a pledge of funds derived from assessments against cotton grower members of the organization.
      1. Any funds borrowed and any funds derived from the sale of bonds shall be used exclusively for funding a boll weevil suppression or eradication program.
      2. Funds derived from assessments against cotton grower members of the organization shall be used to pay the operating expenses of the boll weevil suppression or eradication program and to repay any loans or obligations incurred by the boll weevil suppression or eradication program.
    1. Upon being certified as the certified cotton growers' organization under this subchapter, the certified cotton growers' organization and its board of directors are granted all the immunities and protections allowed under § 16-120-701 et seq., notwithstanding the requirements of § 16-120-702(a).
    2. The certified cotton growers' organization may indemnify its directors against liability incurred in connection with their duties as board members.
    1. In order for a cotton growers' organization to maintain certification by the State Plant Board, it shall provide that its board of directors serve four-year terms of office except that on July 1, 2004, the terms shall be staggered so that, to the extent possible, an equal number of members' terms shall expire each year.
    2. Members of the board of directors may succeed themselves.
      1. Within the parameters of subdivision (g)(3)(B) of this section, the cotton growers' organization shall ensure that the five (5) eradication zones as they existed on January 1, 2003, are represented on the board of directors in proportion to the number of acres of cotton planted in each zone using the prior three (3) years' average acreage to determine the proportional representation.
      2. Beginning July 1, 2004, the cotton growers' organization shall cause its board of directors to be composed of:
        1. At least one (1) member but no more than (2) members who reside within the Southeast Boll Weevil Eradication Zone as it existed on January 1, 2003;
        2. At least one (1) member but no more than (2) members who reside within the Southwest Boll Weevil Eradication Zone as it existed on January 1, 2003;
        3. At least one (1) member but no more than (2) members who reside within the Central Boll Weevil Eradication Zone as it existed on January 1, 2003;
        4. At least one (1) member but no more than (2) members who reside within the Northeast Ridge Boll Weevil Eradication Zone as it existed on January 1, 2003; and
        5. At least one (1) member but no more than (2) members who reside in the Northeast Boll Weevil Eradication Zone as it existed on January 1, 2003.
    3. As vacancies occur, they shall be filled in a manner that will, to the extent possible, ensure the proportional representation required in subdivision (g)(3)(A) of this section.

History. Acts 1991, No. 710, § 12; 1993, No. 854, § 3; 1995, No. 529, § 1; 1997, No. 330, §§ 5, 6; 2003, No. 1726, § 1.

U.S. Code. Section 501(a) of the Internal Revenue Code of 1986, referred to in this section, is codified as 26 U.S.C. § 501(a).

2-16-613. Certification of cotton growers' organization — Revocation.

    1. Upon determination by the State Plant Board that the organization meets the requirements of § 2-16-612, the board shall certify the organization as the official cotton growers' organization.
    2. Such certification shall be for the purposes of this subchapter only and shall not affect other organizations or associations of cotton growers established for other purposes.
  1. The board shall certify only one (1) such organization and may revoke the certification of the organization if at any time the organization shall fail to meet the requirements of this subchapter.
  2. The debts of this organization, should there be any, shall not become the liability of the board.

History. Acts 1991, No. 710, § 13.

2-16-614. Referendum — Assessments.

    1. At the request of the certified cotton growers' organization, the State Plant Board shall authorize a referendum among cotton growers in a designated region on the question of whether an assessment shall be levied upon cotton growers in that region to offset, in whole or in part, the cost of boll weevil suppression, preeradication, eradication, or maintenance programs authorized by this subchapter or any other law of this state.
    2. The program shall be designed on a regional basis to reflect the differences in boll weevil infestation and the relative costs of financing boll weevil suppression and eradication programs in the respective regions.
    1. The assessment levied under this subchapter shall be based upon the number of acres of cotton planted in the eradication area.
    2. The amount of the assessment, the period of time for which it shall be levied, how it shall be levied, when it shall be paid, and the geographical area to be covered by the assessment shall be determined by the board and established by rules under this section.
    3. The annual assessment shall not exceed fifty dollars ($50.00) per acre.
    1. All affected cotton growers shall be entitled to vote in any such referendum; provided, however, that the affected cotton growers produced a cotton crop for harvest, or had an interest therein, in the designated region conducting the referendum in the crop year immediately preceding the year in which the referendum is conducted.
    2. A cotton grower may vote through a power of attorney evidenced in writing, including, but not limited to, a power of attorney recognized by the United States Farm Service Agency or its successor. The board or its cooperators shall determine any questions of eligibility to vote.
    3. Each person who is eligible to vote in the referendum shall be mailed a ballot upon which to cast a vote for or against the boll weevil suppression and eradication program.
    4. Passage of the referendum shall require an affirmative vote of two-thirds (2/3) of those voting in the referendum.
    1. The assessments approved under this subchapter shall be collected by the certified cotton growers' organization or such other agency or entity designated by the board from the affected cotton growers.
    2. The assessments collected by the board or such other agency or entity designated by the board under this subchapter shall be promptly remitted to the certified cotton growers' organization under such terms and conditions as the board shall deem necessary to ensure that the assessments are used in a sound program of eradication or suppression of the boll weevil.
  1. The certified organization shall provide to the board an annual audit of its accounts performed by a certified public accountant.
  2. The assessments collected by the board under this subchapter shall not be state funds.
    1. In addition to the authority granted in this section for a referendum among cotton growers, the board may conduct a separate referendum among cotton growers in the southwest corner of the state, within boundaries to be defined by the board, on the question of whether an assessment shall be levied upon cotton growers in the defined area to provide funds to fund in whole or in part the cost of a boll weevil suppression or eradication program.
    2. Any such regional referendum shall be conducted in the same manner as any other referendum authorized in this section, and any assessments levied under such a referendum shall be subject to the same uses and limitations and shall be made, collected, and remitted in the same manner as assessments levied under any other referenda conducted under this subchapter.

History. Acts 1991, No. 710, § 14; 1993, No. 854, § 4; 1995, No. 529, § 2; 1997, No. 330, § 7.

A.C.R.C. Notes. The reference to Farm Service Agency in subsection (c) may be a reference to the Consolidated Farm Service Agency established at 7 U.S.C. § 6932.

Case Notes

In General.

Section 2-16-610(b)(2) specifically authorized the Arkansas State Plant Board to issue regulations requiring commercial cotton growers to participate in and share the costs of an eradication program, and there was no limiting language in § 2-16-610 or this section making the Board's authority dependent upon referendum approval; thus, the court rejected the growers' claim that a referendum under this section was required before any assessment for the costs of the eradication program could be levied under § 2-16-610. Rose v. Ark. State Plant Bd., 363 Ark. 281, 213 S.W.3d 607 (2005).

2-16-615. Conduct of referendum.

The arrangements for and management of any referendum held under this subchapter shall be under the direction of the certified organization. The organization shall bear all expenses incurred in conducting the referendum, to include furnishing the ballots and arranging for the necessary poll holders.

History. Acts 1991, No. 710, § 15.

2-16-616. Subsequent referenda.

  1. In the event any referendum conducted under this subchapter fails to receive the required number of affirmative votes, the certified organization may call other referenda, with the consent of the State Plant Board.
    1. After the passage of any referendum, the eligible voters shall be allowed by subsequent referenda to be held upon recommendation of the certified cotton growers' organization to vote on whether to eliminate or modify the program.
    2. Upon petition by one-third (1/3) of the cotton growers within a designated region established under § 2-16-614, the certified cotton growers' organization shall be required to conduct a subsequent referendum on whether to eliminate or modify the program, provided that the certified cotton growers' organization is required to hold no more than one (1) petitioned referendum for each designated region during any given calendar year.
    3. Passage of the question called in the subsequent referendum requires that a two-thirds (2/3) majority of those voting approve the subsequent referendum.
    4. All the requirements for an initial referendum must be met in subsequent referenda.
  2. If an approved eradication program is discontinued for any reason, or the certified cotton growers' organization is abolished or loses its certification for any reason, assessments approved, levied, or otherwise collectible under this subchapter on the date of the event remain valid as necessary to pay the financial obligations of the certified cotton growers' organization.

History. Acts 1991, No. 710, § 16; 1993, No. 854, § 5; 1997, No. 330, § 8.

2-16-617. Failure to pay assessments — Extensions — Exemption.

    1. A cotton grower who fails to pay when due and upon reasonable notice any assessment levied under this subchapter shall be subject to a per-acre penalty as established in the State Plant Board's rules in addition to the assessment.
    2. A cotton grower who fails to pay all assessments, including penalties, within thirty (30) days' notice of penalty shall destroy any cotton plants growing on his or her acreage which is subject to the assessment. Any such cotton plants which are not destroyed shall be deemed to be a public nuisance, and the public nuisance may be abated in the same manner as any public nuisance.
  1. The board may petition the circuit court of the judicial circuit in which the public nuisance is located to have the nuisance condemned and destroyed, with all costs of destroying to be levied against the grower. This injunctive relief shall be available to the board notwithstanding the existence of any other legal remedy, and the board shall not be required to file a bond.
    1. In addition to any other remedies for the collection of assessments, including penalties, the board may secure a lien upon cotton subject to the assessments.
      1. If the cotton was grown on a cost-share basis, the lien may be perfected on the landowner's share and the grower's share of the cotton.
      2. Any buyer of cotton shall take free of the lien if he or she has not received written notice of the lien from the board or if he or she has paid for the cotton by a check in which the board is named as joint payee.
    2. The amount of the lien on the cotton shall reflect the landowner's and grower's proportionate share of the assessment.
      1. No gins in the State of Arkansas shall gin any cotton for any cotton grower from Arkansas or from any other state unless and until that grower files with the respective gin a certificate of compliance issued by the board certifying that the grower has paid all fees, assessments, penalties, and costs imposed and required under this subchapter, unless a grower has been granted an extension by the board in compliance with subsection (e) of this section.
      2. It is the responsibility of each grower to procure a certificate of compliance or proof that an exemption for compliance has been granted from the board by September 1 of each successive crop year and to file same with a gin.
      1. Any gin that gins cotton for any cotton grower who has not filed a current valid certificate of compliance issued by the board shall be assessed a penalty to be established by board rules.
      2. Any cotton grower will be subject to having a lien placed on the following year's crop for any unpaid assessments or penalties incurred in the previous year.
    1. The board shall by rule establish a procedure in which a cotton grower can apply for exemption from payment of any assessment or penalty imposed in this section, on the basis that the payment of the assessment or the penalty will impose undue financial hardship on the grower, and shall prescribe the criteria to be used in determining undue financial hardship.
      1. Any cotton grower who wishes to request an exemption from payment of the assessment, or the penalty, or both, shall apply for the exemption on forms prescribed by the board.
      2. A separate application must be filed for each calendar year for which the cotton grower seeks an exemption, and each such application shall contain information on which the grower relies to justify an exemption on the basis of undue financial hardship.
      3. The application form shall include an oath or affirmation of the applicant as to the truth of all information contained in or accompanying the application.
      1. The board shall forward each completed exemption application form and any information accompanying the form to the cotton growers' organization certified under § 2-16-612.
      2. The certified cotton growers' organization shall determine whether each applicant qualifies for a hardship exemption based on the information contained in or accompanying the application form.
    2. If the certified organization determines that the payment of the assessment or the penalty, or both, would impose undue financial hardship on a cotton grower who has applied for an exemption, the organization may:
      1. Exempt the cotton grower from payment of the assessment or the penalty, or both; or
      2. Permit the cotton grower to pay the assessment or penalty, or both, on an installment payment plan and prescribe the payment schedule.
    3. Upon making a determination on any application for exemption, the certified organization shall notify the board of its determination, which shall be binding on the applicant.
    4. Upon receipt of notice of a determination by the organization, the board shall promptly notify the affected cotton grower of the determination.
    5. If an exemption is denied, the assessment and penalties for the year in which the application is made will be due at the time they would otherwise have been due if the application had not been filed or within thirty (30) days after the date the notice of the adverse determination is received by the cotton grower, whichever is later.

History. Acts 1991, No. 710, § 17; 1993, No. 854, § 6; 1995, No. 529, §§ 3, 4; 2003, No. 1726, § 2.

Subchapter 7 — Arkansas Fire Ant Advisory Board

Cross References. Red imported fire ant districts, § 14-286-101 et seq.

Effective Dates. Acts 1993, No. 268, § 13: Feb. 26, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly that fire ants are becoming a serious problem in this state; that it is urgent that appropriate action be taken to provide for expanded research concerning the fire ant; that this act is designed to establish a Fire Ant Advisory Board to promote such research and to assist in planning and executing the research. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer [sic], it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-16-701. Creation.

  1. The Arkansas Fire Ant Advisory Board is hereby created to accept all gifts, grants, and other moneys from any source for the purpose of financing new and ongoing fire ant research and educational programs and providing counsel in planning and executing such research and educational programs.
  2. These moneys will route through the University of Arkansas Agricultural Experiment Station, the University of Arkansas Cooperative Extension Service, or the University of Arkansas Agricultural Development Council at Fayetteville for use by the board and fire ant researchers in the School of Forest Resources at the University of Arkansas at Monticello or other researchers in cooperative efforts with researchers at the University of Arkansas at Monticello.

History. Acts 1993, No. 268, §§ 1, 2; 1995, No. 112, § 1.

2-16-702. Members.

  1. The Arkansas Fire Ant Advisory Board shall be composed of the Vice President for Agriculture of the University of Arkansas, the head of the Department of Entomology at the University of Arkansas at Fayetteville or his or her representative, the Secretary of the Department of Agriculture or his or her representative, and the following to be appointed from an ant-infested area by the Chair of the Arkansas Fire Ant Advisory Board:
    1. A representative of an Arkansas environmental interest group;
    2. A county extension agent or a member of the general public;
    3. A representative of the farm or ranch industry;
    4. A representative of the horticultural or nursery industry; and
    5. A representative of the Arkansas Pest Control Association.
    1. Members of the board appointed by the chair shall be appointed for four-year terms.
    2. Persons appointed to fill vacancies shall serve for the remainder of the unexpired term.
  2. Members of the board shall serve without compensation. Board members may receive expense reimbursement in accordance with § 25-16-901 et seq.

History. Acts 1993, No. 268, §§ 4-6; 1997, No. 250, § 4; 1999, No. 1119, § 1; 2019, No. 910, § 24.

Publisher's Notes. As originally enacted by Acts 1993, No. 268, § 5, subdivision (b)(1) read as follows:

“Members of the board shall serve staggered terms, so that the terms of two appointed board members expire on January 1 of each odd-numbered year, and their successors shall be appointed for four-year terms.”

Amendments. The 2019 amendment, in the introductory language of (a), substituted “Vice President for Agriculture of the University of Arkansas” for “Vice President for Agriculture of the University of Arkansas System”, “Secretary of the Department of Agriculture” for “Director of the State Plant Board”, and “Chair of the Arkansas Fire Ant Advisory Board” for “chair”.

2-16-703. Chair — Meetings.

  1. The Vice President for Agriculture of the University of Arkansas system shall serve as chair of the Arkansas Fire Ant Advisory Board.
  2. The board shall meet at the call of the chair and no less frequently than annually.
  3. The chair shall provide necessary meeting space and administrative services for the board.

History. Acts 1993, No. 268, §§ 3, 7; 1997, No. 577, § 1.

2-16-704. Rules.

The Arkansas Fire Ant Advisory Board may promulgate rules necessary for the implementation of this subchapter.

History. Acts 1993, No. 268, § 9.

2-16-705. Annual report.

No later than January 1 of each year, the Arkansas Fire Ant Advisory Board shall report to the directors of the University of Arkansas Agricultural Experiment Station and the University of Arkansas Cooperative Extension Service regarding all moneys received and expended by it during the preceding fiscal year.

History. Acts 1993, No. 268, § 8.

Subchapter 8 — Thistle Control and Eradication

2-16-801. Annual assessment.

  1. As a part of its assessment of activities and accomplishments, each conservation district in this state shall annually assess the thistle problem within the district and report to the Arkansas Natural Resources Commission no later than September 30 each year regarding the extent of the thistle problem within the district and methods proposed to be used to eradicate and control the thistles.
  2. The commission may provide financial assistance to the conservation districts from any funds available for that purpose.

History. Acts 1997, No. 1030, § 1.

2-16-802. Interagency cooperation.

A coordinated, concerted effort by the various agencies affected by the thistle problem is necessary to realize a proper remedy and therefore it is requested that the State Plant Board, Arkansas Forestry Commission, Arkansas Natural Resources Commission, University of Arkansas Cooperative Extension Service, Natural Resources Conservation Service of the United States Department of Agriculture, the several conservation districts, and all other interested agencies cooperate with each other and coordinate their efforts toward the eradication of thistles in this state.

History. Acts 1997, No. 1030, § 2.

Subchapter 9 — Pest Control Compact

2-16-901. Pest Control Compact.

The Pest Control Compact is hereby enacted into law and entered into with all other jurisdictions legally joining therein in the form substantially as follows:

Article IFindings

The party states find that:

  1. In the absence of the higher degree of cooperation among them possible under this Compact, the annual loss of approximately 137 billion dollars from the depredations of pests is virtually certain to continue, if not to increase.
  2. Because of the varying climatic, geographic and economic factors, each state may be affected differently by particular species of pests; but all states share the inability to protect themselves fully against those pests which present serious dangers to them.
  3. The migratory character of pest infestations makes it necessary for states both adjacent to and distant from one another, to complement each other's activities when faced with conditions of infestation and reinfestation.
  4. While every state is seriously affected by a substantial number of pests, and every state is susceptible of infestation by many species of pests not now causing damage to its crops and plant life and products, the fact that relatively few species of pests present equal danger to or are of interest to all states makes the establishment and operation of an Insurance Fund, from which individual states may obtain financial support for pest control programs of benefit to them in other states and to which they may contribute in accordance with their relative interest, the most equitable means of financing cooperative pest eradication and control programs.

Article IIDefinitions

As used in this Compact, unless the context clearly requires a different construction:

  1. “State” means a state, territory or possession of the United States, the District of Columbia, and the Commonwealth of Puerto Rico.
  2. “Requesting state” means a state which invokes the procedures of the Compact to secure the undertaking or intensification of measures to control or eradicate one or more pests within one or more other states.
  3. “Responding state” means a state requested to undertake or intensify the measures referred to in subdivision (b) of this Article.
  4. “Pest” means any invertebrate animal, pathogen, parasitic plant or similar or allied organism which can cause disease or damage in any crops, trees, shrubs, grasses, or other plants of substantial value.
  5. “Insurance Fund” means the Pest Control Insurance Fund established pursuant to this Compact.
  6. “Governing Board” means the administrators of this Compact representing all of the party states when such administrators are acting as a body in pursuance of authority vested in them by this Compact.
  7. “Executive committee” means the committee established pursuant to Article V (e) of this Compact.

Article IIIThe Insurance Fund

There is hereby established a Pest Control Insurance Fund for the purpose of financing other than normal pest control operations which states may be called upon to engage in pursuant to this Compact. The Insurance Fund shall contain moneys appropriated to it by the party states and any donations and grants accepted by it. All appropriations, except as conditioned by the rights and obligations of party states expressly set forth in this Compact, shall be unconditional and may not be restricted by the appropriating state to use in the control of any specified pest or pests. Donations and grants may be conditional or unconditional, provided that the Insurance Fund shall not accept any donation or grant whose terms are inconsistent with any provision of this Compact.

Article IVThe Insurance Fund, Internal Operations and Management

  1. The Insurance Fund shall be administered by a Governing Board and Executive Committee as hereinafter provided. The actions of the Governing Board and the Executive Committee pursuant to this Compact shall be deemed the actions of the Insurance Fund.
  2. The members of the Governing Board shall be entitled to one vote on such board. No action of the Governing Board shall be binding unless taken at a meeting at which a majority of the total number of votes on the Governing Board is cast in favor thereof. Action of the Governing Board shall be only at a meeting at which a majority of the members are present.
  3. The Insurance Fund shall have a seal which may be employed as an official symbol and which may be affixed to documents and otherwise used as the Governing Board may provide.
  4. The Governing Board shall elect annually, from among its members, a chairman, a vice chairman, a secretary and a treasurer. The chairman may not succeed himself. The Governing Board may appoint an executive director and fix his duties and his compensation, if any. Such executive director shall serve at the pleasure of the Governing Board. The Governing Board shall make provision for the bonding of such of the officers and employees of the Insurance Fund as may be appropriate.
  5. Irrespective of the civil service, personnel or other merit system laws of any of the party states, the executive director, or if there be no executive director, the chairman, in accordance with such procedures as the bylaws may provide, shall appoint, remove or discharge such personnel as may be necessary for the performance of the functions of the Insurance Fund and shall fix the duties and compensation of such personnel. The Governing Board in its bylaws shall provide for the personnel policies and programs of the Insurance Fund.
  6. The Insurance Fund may borrow, accept or contract for the services of personnel from any state, the United States, or any other governmental agency, or from any person, firm, association, or corporation.
  7. The Insurance Fund may accept for any of its purposes and functions under this Compact any and all donations, and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any state, the United States, or any other governmental agency, or from any person, firm, association, or corporation, and may receive, utilize and dispose of the same. Any donation, gift, or grant accepted by the Governing Board pursuant to this paragraph or services borrowed pursuant to paragraph (f) of this Article shall be reported in the annual report of the Insurance Fund. Such report shall include the nature, amount and conditions, if any, of the donation, gift, grant, or services borrowed and the identity of the donor or lender.
  8. The Governing Board shall adopt bylaws for the conduct of the business of the Insurance Fund and shall have the power to amend and to rescind these bylaws. The Insurance Fund shall publish its bylaws in convenient form and shall file a copy thereof and a copy of any amendment thereto with the appropriate agency or officer in each of the party states.
  9. The Insurance Fund annually shall make to the Governor and legislature of each party state a report covering its activities for the preceding year. The Insurance Fund may make such additional reports as it may deem desirable.
  10. In addition to the powers and duties specifically authorized and imposed, the Insurance Fund may do such other things as are necessary and incidental to the conduct of its affairs pursuant to this Compact.

Article VCompact and Insurance Fund Administration

  1. In each party state there shall be a Compact administrator, who shall be selected and serve in such manner as the laws of his state may provide, and who shall:
    1. Assist in the coordination of activities pursuant to the Compact in his state; and
    2. Represent his state on the Governing Board of the Insurance Fund.
  2. If the laws of the United States specifically so provide, or if administrative provision is made therefore within the federal government, the United States may be represented on the Governing Board of the Insurance Fund by not to exceed three representatives. Any such representative or representatives of the United States shall be appointed and serve in such manner as may be provided by or pursuant to federal law, but no such representative shall have a vote on the Governing Board or the Executive Committee thereof.
  3. The Governing Board shall meet at least once each year for the purpose of determining policies and procedures in the administration of the Insurance Fund and, consistent with the provisions of the Compact, supervising and giving direction to the expenditure of moneys from the Insurance Fund. Additional meetings of the Governing Board shall be held on call of the chairman, the Executive Committee, or a majority of the membership of the Governing Board.
  4. At such times as it may be meeting, the Governing Board shall pass upon applications for assistance from the Insurance Fund and authorize disbursements therefrom. When the Governing Board is not in session, the Executive Committee thereof shall act as agent of the Governing Board, with full authority to act for it in passing upon such applications.
  5. The Executive Committee shall be composed of the chairman of the Governing Board and four additional members of the Governing Board chosen by it so that there shall be one member representing each of four geographic groupings of party states. The Governing Board shall make such geographic groupings. If there is representation of the United States on the Governing Board, one such representative may meet with the Executive Committee. The chairman of the Governing Board shall be chairman of the Executive Committee. No action of the Executive Committee shall be binding unless taken at a meeting at which at least four members of such Committee are present and vote in favor thereof. Necessary expenses of each of the five members of the Executive Committee incurred in attending meetings of such Committee, when not held at the same time and place as a meeting of the Governing Board, shall be charges against the Insurance Fund.

Article VIAssistance and Reimbursement

  1. Each party state pledges to each other party state that it will employ its best efforts to eradicate, or control within the strictest practicable limits, any and all pests. It is recognized that performance of this responsibility involves:
    1. The maintenance of pest control and eradication activities of interstate significance by a party state at a level that would be reasonable for its own protection in the absence of this Compact.
    2. The meeting of emergency outbreaks or infestations of interstate significance to no less an extent than would have been done in the absence of this Compact.
  2. Whenever a party state is threatened by a pest not present within its borders but present within another party state, or whenever a party state is undertaking or engaged in activities for the control or eradication of a pest or pests, and finds that such activities are or would be impracticable or substantially more difficult of success by reason of failure of another party state to cope with infestation or threatened infestation, that state may request the Governing Board to authorize expenditures from the Insurance Fund for eradication or control measures to be taken by one or more of such other party states at a level sufficient to prevent, or to reduce to the greatest practicable extent, infestation or reinfestation of the requesting state. Upon such authorization the responding state or states shall take or increase such eradication or control measures as may be warranted. A responding state shall use moneys available from the Insurance Fund expeditiously and efficiently to assist in affording the protection requested.
  3. In order to apply for expenditures from the Insurance Fund, a requesting state shall submit the following in writing:
    1. A detailed statement of the circumstances which occasion the request for the invoking of the Compact.
    2. Evidence that the pest on account of whose eradication or control assistance is requested constitutes a danger to an agricultural or forest crop, product, tree, shrub, grass, or other plant having a substantial value to the requesting state.
    3. A statement of the extent of the present and projected program of the requesting state and its subdivisions, including full information as to the legal authority for the conduct of such program or programs and the expenditures being made or budgeted therefore, in connection with the eradication, control, or prevention of introduction of the pest concerned.
    4. Proof that the expenditures being made or budgeted as detailed in item 3 do not constitute a reduction of the effort for the control or eradication of the pest concerned or, if there is a reduction, the reasons why the level of program detailed in item 3 constitutes a normal level of pest control activity.
    5. A declaration as to whether, to the best of its knowledge and belief, the conditions which in its view occasion the invoking of the Compact in the particular instance can be abated by a program undertaken with the aid of moneys from the Insurance Fund in one year or less, or whether the request is for an installment in a program which is likely to continue for a longer period of time.
    6. Such other information as the Governing Board may require consistent with the provisions of this Compact.
  4. The Governing Board or Executive Committee shall give due notice of any meeting at which an application for assistance from the Insurance Fund is to be considered. Such notice shall be given to the Compact administrator of each party state and to such other officers and agencies as may be designated by the laws of the party states. The requesting state and any other party state shall be entitled to be represented and present evidence and argument at such meeting.
  5. Upon the submission as required by paragraph (c) of this Article and such other information as it may have or acquire, and upon determining that an expenditure of funds is within the purposes of this Compact and justified thereby, the Governing Board or Executive Committee shall authorize support of the program. The Governing Board or Executive Committee may meet at any time or place for the purpose of receiving and considering an application. Any and all determinations of the Governing Board or Executive Committee, with respect to an application, together with the reasons therefore shall be recorded and subscribed in such manner as to show and preserve the votes of the individual members thereof.
  6. A requesting state which is dissatisfied with a determination of the Executive Committee shall upon notice in writing given within twenty days of the determination with which it is dissatisfied, be entitled to receive a review thereof at the next meeting of the Governing Board. Determinations of the Executive Committee shall be reviewable only by the Governing Board at one of its regular meetings, or at a special meeting held in such manner as the Governing Board may authorize.
  7. Responding states required to undertake or increase measures pursuant to this Compact may receive moneys from the Insurance Fund, either at the time or times when such state incurs expenditures on account of such measures, or as reimbursement for expenses incurred and chargeable to the Insurance Fund. The Governing Board shall adopt and, from time to time, may amend or revise procedures for submission of claims upon it and for payment thereof.
  8. Before authorizing the expenditure of moneys from the Insurance Fund pursuant to an application of a requesting state, the Insurance Fund shall ascertain the extent and nature of any timely assistance or participation which may be available from the federal government and shall request the appropriate agency or agencies of the federal government for such assistance and participation.
  9. The Insurance Fund may negotiate and execute a memorandum of understanding or other appropriate instrument defining the extent and degree of assistance or participation between and among the Insurance Fund, cooperating federal agencies, states, and any other entities concerned.

Article VIIAdvisory and Technical Committees

The Governing Board may establish advisory and technical committees composed of state, local, and federal officials, and private persons to advise it with respect to any one or more of its functions. Any such advisory or technical committee, or any member or members thereof may meet with and participate in its deliberations upon request of the Governing Board or Executive Committee. An advisory or technical committee may furnish information and recommendations with respect to any application for assistance from the Insurance Fund being considered by such Board or Committee and the Board or Committee may receive and consider the same: provided that any participant in a meeting of the Governing Board or Executive Committee held pursuant to Article VI (d) of the Compact shall be entitled to know the substance of any such information and recommendations, at the time of the meeting if made prior thereto or as a part thereof or, if made thereafter, no later than the time at which the Governing Board or Executive Committee makes its disposition of the application.

Article VIIIRelations with Nonparty Jurisdictions

  1. A party state may make application for assistance from the Insurance Fund in respect of a pest in a nonparty state. Such application shall be considered and disposed of by the Governing Board or Executive Committee in the same manner as an application with respect to a pest within a party state, except as provided in this Article.
  2. At or in connection with any meeting of the Governing Board or Executive Committee held pursuant to Article VI (d) of this Compact a nonparty state shall be entitled to appear, participate, and receive information only to such extent as the Governing Board or Executive Committee may provide. A nonparty state shall not be entitled to review of any determination made by the Executive Committee.
  3. The Governing Board or Executive Committee shall authorize expenditures from the Insurance Fund to be made in a nonparty state only after determining that the conditions in such state and the value of such expenditures to the party states as a whole justify them. The Governing Board or Executive Committee may set any conditions which it deems appropriate with respect to the expenditure of moneys from the Insurance Fund in a nonparty state and may enter into such agreement or agreements with nonparty states and other jurisdictions or entities as it may deem necessary or appropriate to protect the interests of the Insurance Fund with respect to expenditures and activities outside of party states.

Article IXFinance

  1. The Insurance Fund shall submit to the executive head or designated officer or officers of each party state a budget for the Insurance Fund for such period as may be required by the laws of that party state for a presentation to the legislature thereof.
  2. Each of the budgets shall contain specific recommendations of the amount or amounts to be appropriated by each of the party states. The request for appropriations shall be apportioned among the party states as follows: one-tenth of the total budget in equal shares and the remainder in proportion to the value of agricultural and forest crops and products, excluding animals and animal products, produced in each party state. In determining the value of such crops and products the Insurance Fund may employ such source or sources of information as in its judgment present the most equitable and accurate comparisons among the party states. Each of the budgets and requests for appropriations shall indicate the source or sources used in obtaining information concerning value of products.
  3. The financial assets of the Insurance Fund shall be maintained in two accounts to be designated respectively as the “Operating Account” and the “Claims Account.” The Operating Account shall consist only of those assets necessary for the administration of the Insurance Fund during the next ensuing two-year period. The Claims Account shall contain all moneys not included in the Operating Account and shall not exceed the amount reasonably estimated to be sufficient to pay all legitimate claims on the Insurance Fund for a period of three years. At any time when the Claims Account has reached its maximum limit or would reach its maximum limit by the addition of moneys requested for appropriation by the party states, the Governing Board shall reduce its budget requests on a pro rata basis in such manner as to keep the Claims Account within such maximum limit. Any moneys in the Claims Account by virtue of conditional donations, grants, or gifts shall be included in calculations made pursuant to this paragraph only to the extent that such moneys are available to meet demands arising out of the claims.
  4. The Insurance Fund shall not pledge the credit of any party state. The Insurance Fund may meet any of its obligations in whole or in part with moneys available to it under Article IV (g) of this Compact, provided that the Governing Board take specific action setting aside such moneys prior to incurring any obligation to be met in whole or in part in such manner. Except where the Insurance Fund makes use of moneys available to it under Article IV (g) hereof, the Insurance Fund shall not incur any obligation prior to the allotment of moneys by the party states adequate to meet the same.
  5. The Insurance Fund shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the Insurance Fund shall be subject to the audit and accounting procedures established under its bylaws. However, all receipts and disbursements of funds handled by the Insurance Fund shall be audited yearly by a certified or licensed public accountant and report of the audit shall be included in and become part of the annual report of the Insurance Fund.
  6. The accounts of the Insurance Fund shall be open at any reasonable time for inspection by duly authorized officers of the party states and by any persons authorized by the Insurance Fund.

Article XEntry Into Force and Withdrawal

  1. This Compact shall enter into force when enacted into law by any five or more states. Thereafter, this Compact shall become effective as to any other state upon its enactment thereof.
  2. Any party state may withdraw from this Compact by enacting a statute repealing the same, but no such withdrawal shall take effect until two years after the executive head of the withdrawing state has given notice in writing of the withdrawal to the executive heads of all other party states. No withdrawal shall affect any liability already incurred by or chargeable to a party state prior to the time of such withdrawal.

Article XIConstruction and Severability

This Compact shall be liberally construed so as to effectuate the purposes thereof. The provisions of this Compact shall be severable and if any phrase, clause, sentence, or provision of this Compact is declared to be contrary to the constitution of any state or of the United States or the applicability thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this Compact and the applicability thereof to any government, agency, person, or circumstance shall not be affected thereby. If this Compact shall be held contrary to the constitution of any state participating herein the Compact shall remain in full force and effect as to the remaining party states and in full force and effect as to the state affected as to all severable matters.

History. Acts 2009, No. 401, § 1; 2013, No. 1122, § 2.

Amendments. The 2013 amendment inserted “The party states find that” before (a).

2-16-902. Cooperation with insurance fund.

Consistent with law and within available appropriations, the departments, agencies and officers of this state may cooperate with the Insurance Fund established by the Pest Control Compact.

History. Acts 2009, No. 401, § 1.

2-16-903. Filing of bylaws and amendments.

Under Article IV (h) of the Compact, copies of bylaws and amendments thereto shall be filed with the Director of the State Plant Board.

History. Acts 2009, No. 401, § 1.

2-16-904. Compact administrator.

The Compact administrator for this state shall be the Director of the State Plant Board.

History. Acts 2009, No. 401, § 1.

2-16-905. Request or application for assistance.

Within the meaning of Article VI (b) or VIII (a), a request or application for assistance from the Insurance Fund may be made by the Governor or the Director of the State Plant Board, whenever in his or her judgment the conditions qualifying this state for such assistance exist and it would be in the best interest of this state to make such request.

History. Acts 2009, No. 401, § 1.

2-16-906. Notices.

In addition to the state Compact administrator, notices under Article VI (d) should be sent to the Assistant Director of the State Plant Board and the person designated as the State Plant Regulatory Official.

History. Acts 2009, No. 401, § 1.

2-16-907. Credit for expenditures.

The department, agency, or officer expending or becoming liable for an expenditure on account of a control or eradication program undertaken or intensified under the Compact shall have credited to his of her account, in the state treasury the amount or amounts of any payments made to this state to defray the cost of such program, or any part thereof, or as reimbursement thereof.

History. Acts 2009, No. 401, § 1.

2-16-908. Definition.

As used in this Compact, with reference to this state, the term “executive head” shall mean the Governor.

History. Acts 2009, No. 401, § 1.

2-16-909. Effective date.

This law becomes effective September 1, 2009.

History. Acts 2009, No. 401, § 1.

Chapter 17 Warehousing of Grain

Research References

Am. Jur. 78 Am. Jur. 2d, Warehouses, § 1 et seq.

C.J.S. 93 C.J.S., Warehousemen, § 1 et seq.

U. Ark. Little Rock L.J.

Note, Storers of Grain — Arkansas Stands Alone in Protecting the Rights of Depositors of Grain in Public Warehouses, etc., 9 U. Ark. Little Rock L.J. 699.

Subchapter 1 — General Provisions

[Reserved.]

Subchapter 2 — Public Warehouses — Generally

Publisher's Notes. Acts 1979, No. 83, § 42, provided that anticipatory action to implement the provisions of this subchapter could be taken prior to the effective date of this subchapter.

Effective Dates. Acts 1979, No. 83, § 43: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is an urgent need for regulation and licensing of grain warehouses in the State of Arkansas. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, welfare and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1983, No. 264, § 3 [4]: Feb. 25, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that grain producers routinely deliver their grain to warehouses and do not obtain warehouse receipts but merely unpriced scale tickets; that unpriced scale tickets should be nonnegotiable warehouse receipts and thereby provide the producer a secured position; and that this act is immediately necessary to so provide. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 783, § 13: Mar. 29, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly meeting in Regular Session that the provisions of this act are of critical importance to the state's ability to continue the duties, responsibilities, and functions of the State Plant Board. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

Ark. L. Rev.

Note, Act 401 of the Public Grain Warehouse Law: An Exception to the U.C.C. Concept of Voidable Title, 37 Ark. L. Rev. 293.

Case Notes

Federal Agencies.

Although the Commodity Credit Corporation, an agency of the United States Department of Agriculture, is not a grower or producer protected under § 2-17-301 et seq., it is protected by § 2-17-201 et seq. which does not conflict with and was not repealed by § 2-17-301 et seq.Reynolds v. Commodity Credit Corp., 300 Ark. 441, 780 S.W.2d 15 (1989).

2-17-201. Title.

This subchapter shall be known as the “Arkansas Public Grain Warehouse Law”.

History. Acts 1979, No. 83, § 1; A.S.A. 1947, § 77-1301.

Case Notes

Cited: Reynolds v. Commodity Credit Corp., 300 Ark. 441, 780 S.W.2d 15 (1989).

2-17-202. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Commissioner” means the Public Grain Warehouse Commissioner, who shall be the Director of the State Plant Board or his or her designated representative;
  2. “Grain” means all grains for which standards have been established under the United States Grain Standards Act, as amended, and shall include rice, as defined by the standards of the United States Department of Agriculture;
  3. “Person” means individuals, corporations, partnerships, and all associations of two (2) or more persons having a joint or common interest;
  4. “Public grain warehouse” means any building, structure, or other protected enclosure in this state used for the purpose of storing grain for a consideration;
  5. “Public grain warehouseman” means any person who operates a public grain warehouse as defined in this section;
  6. “Stored grain” means any grain received in any public grain warehouse, located in this state, if it is not purchased and beneficially owned by the public grain warehouseman; and
    1. “Warehouse receipt” means a licensed warehouse receipt issued under this subchapter and an unpriced scale ticket.
    2. Including unpriced scale tickets within the definition of “warehouse receipt” does not make the unpriced scale tickets negotiable.

History. Acts 1979, No. 83, § 2; 1983, No. 264, § 1; A.S.A. 1947, § 77-1302.

U.S. Code. The United States Grain Standards Act referred to in this section is codified as 7 U.S.C. § 71 et seq.

Case Notes

Cited: Tucker v. Durham, 285 Ark. 264, 686 S.W.2d 402 (1985); Cooper, Inc. v. Farm Bureau Mut. Ins. Co., 289 Ark. 218, 711 S.W.2d 155 (1986); Reynolds v. Commodity Credit Corp., 300 Ark. 441, 780 S.W.2d 15 (1989).

2-17-203. Applicability.

  1. The provisions of this subchapter shall apply to all public grain warehouses and to the operations of public grain warehouses whether or not any of the grain therein is owned by the warehouseman, unless the public grain warehouse is licensed under the provisions of the United States Warehouse Act, as amended.
  2. The provisions and definitions of the Uniform Commercial Code, § 4-1-101 et seq., relating to warehouse receipts, to the extent not inconsistent with this subchapter, shall govern warehouse receipts issued by public grain warehousemen, and the other provisions of the Uniform Commercial Code, § 4-1-101 et seq. shall also be applicable to the provisions of this subchapter to the extent not inconsistent with this subchapter.

History. Acts 1979, No. 83, § 3; A.S.A. 1947, § 77-1303.

U.S. Code. The United States Warehouse Act referred to in this section is codified as 7 U.S.C. § 241 et seq.

Case Notes

Cited: Tucker v. Durham, 285 Ark. 264, 686 S.W.2d 402 (1985); Reynolds v. Commodity Credit Corp., 300 Ark. 441, 780 S.W.2d 15 (1989).

2-17-204. Penalties.

  1. Any person who issues a warehouse receipt for grain without holding a valid public grain warehouse license or who commits any willful violation of any provision of this subchapter shall be guilty of a Class D felony.
  2. Any unintentional or negligent violation of this subchapter shall be a Class A misdemeanor.

History. Acts 1979, No. 83, § 37; A.S.A. 1947, § 77-1337.

Cross References. Imposition of fines, § 5-4-201.

Sentence of imprisonment, § 5-4-401.

2-17-205. Duty to enforce.

The State Plant Board shall carry out and enforce the provisions of this subchapter and is empowered to:

  1. Promulgate rules;
  2. Carry out necessary inspections;
  3. Appoint and fix the duties of personnel; and
  4. Provide such equipment as may be necessary to enforce the provisions hereof.

History. Acts 1979, No. 83, § 4; A.S.A. 1947, § 77-1304.

Case Notes

Cited: Banque Indosuez v. King, 46 Ark. App. 270, 878 S.W.2d 432 (1994).

2-17-206. State license.

  1. No person shall operate a public grain warehouse or issue a warehouse receipt without first having obtained a license under this subchapter, unless the public grain warehouse is licensed under the provisions of the United States Warehouse Act, as amended.
  2. All public grain warehouses licensed under the United States Warehouse Act, as amended, shall file with the State Plant Board copies of their current licenses and copies of all subsequent licenses or renewals so as to always have copies of current licenses on file with the board.

History. Acts 1979, No. 83, § 5; A.S.A. 1947, § 77-1305.

U.S. Code. The United States Warehouse Act referred to in this section is codified as 7 U.S.C. § 241 et seq.

2-17-207. License applications.

    1. Applications for licenses under this subchapter are to be made on forms prescribed by the Public Grain Warehouse Commissioner for each warehouse.
    2. Every application is to be accompanied by an application fee of one hundred fifty dollars ($150) and a certified financial statement in a form prescribed by the commissioner and any further information the commissioner may by rule require.
    1. If a warehouseman operates one (1) or more warehouses in the same city or town in conjunction with each other, if only one (1) set of books is kept for all the warehouses and scale tickets, and if warehouse receipts and checks of but one (1) series are issued for grain received or stored therein, then only one (1) license and bond shall be required for the operation of all the warehouses. In these cases, the license fee prescribed in this section shall be computed on the basis of the aggregate capacity of all warehouses operated by the licensee.
    2. The use for the storage of grain by a licensed warehouseman of a facility which is in the same city or town as licensed facilities and is neither licensed nor exempted, or for other violation of the provisions of this section, shall be cause for suspension or revocation of any license issued to the warehouseman for the storage of grain.
  1. Licenses issued under this subchapter are not transferable. Any person acquiring a new or existing public grain warehouse must apply for a license to operate the warehouse, subject to other provisions of this subchapter.

History. Acts 1979, No. 83, § 6; A.S.A. 1947, § 77-1306.

2-17-208. Filing schedule of charges.

    1. Before the issuance of a license under this subchapter, the public grain warehouseman shall file a copy of his or her schedule of charges for storage and other services with the Public Grain Warehouse Commissioner.
    2. If the public grain warehouseman desires to make any changes in the schedule of charges during the license period, he or she shall file with the commissioner a statement in writing showing the change at least thirty (30) days before its effective date.
  1. Each public grain warehouseman shall keep conspicuously posted the schedule of charges for storage and other services as so filed and shall strictly adhere to these charges.

History. Acts 1979, No. 83, § 8; A.S.A. 1947, § 77-1308.

2-17-209. Bond requirements.

        1. Before any license is issued to any warehouseman, the warehouseman shall file with the Public Grain Warehouse Commissioner a surety bond executed by the public grain warehouseman as principal and by a corporate surety licensed to do business in this state as surety.
        2. The bond shall run to the State of Arkansas and be for the benefit of all depositors or storers of grain, their legal representatives, attorneys, or assigns.
        1. No bond shall be accepted for the purposes of this subchapter until it has been approved by the commissioner.
        2. The bond shall be conditioned upon the warehouseman delivering all stored grain or payment of the value thereof upon the surrender of the warehouse receipt.
        3. The commissioner may require the increases in the amount of the bond, from time to time, as he or she may deem necessary for the protection of the storage receipt holders.
      1. The aggregate liability of the surety to all depositors or storers of grain shall not exceed the sum of the bond.
      2. The bond may be cancelled at any time by the surety by giving written notice to the commissioner of its intention to cancel the bond. All liability thereunder shall terminate thirty (30) days after the receipt of the notice by the commissioner, except that the notice shall not affect any claims arising under the bond, whether presented or not, before the effective date of the cancellation notice.
  1. In lieu of the bond required in subsection (a) of this section, an applicant for a license may be a self-insurer by posting with the commissioner cash or any combination of securities, the market value of which is readily ascertainable and, if negotiable, by delivery or assignment, of the kinds described in § 23-63-806, United States Government obligations, § 23-63-809, municipal or county utilities, § 23-63-813, international banks, and § 23-63-814, corporate bonds and debentures.

History. Acts 1979, No. 83, § 15; A.S.A. 1947, § 77-1315.

Case Notes

Protected Depositors.

The Commodity Credit Corporation, an agency of the federal government, is a protected depositor of grain under the Arkansas Public Grain Warehouse Law, and is entitled to share in the pro-rata disbursement of a warehouseman's bond. Reynolds v. Commodity Credit Corp., 300 Ark. 441, 780 S.W.2d 15 (1989).

Sellers Not Protected.

A bond issued to a grain warehouseman covers only those who hold warehouse receipts for grain stored; it does not cover a farmer who sells his or her grain to warehouseman but does not receive the promised payment. Farm Bureau Mut. Ins. Co. v. Wright, 285 Ark. 228, 686 S.W.2d 778 (1985).

Warehouse Receipts.

A bond issued by a surety to a public grain warehouseman was intended only for the protection of holders of “warehouse receipts”; therefore, since the farmers admittedly held only unpriced scale tickets and not warehouse receipts, there could be no recovery under the bond and, hence, no cause of action against the surety. Cooper, Inc. v. Farm Bureau Mut. Ins. Co., 289 Ark. 218, 711 S.W.2d 155 (1986) (decision prior to 1983 amendment of § 2-17-202, which included unpriced scale ticket in definition of warehouse receipt).

2-17-210. Amount of bond.

    1. The amount of bond to be furnished for each public grain warehouse shall be fixed at a rate of:
      1. Twenty cents (20¢) per bushel for the first one million (1,000,000) bushels of licensed capacity;
      2. Fifteen cents (15¢) per bushel for the next one million (1,000,000) bushels of licensed capacity; and
      3. Ten cents (10¢) per bushel for all licensed capacity over two million (2,000,000) bushels.
    2. In no case shall the amount of the bond be less than twenty thousand dollars ($20,000), except as prescribed in subsections (c) and (d) of this section.
    3. The licensed capacity shall be equal to the maximum number of bushels of grain that the public grain warehouse can accommodate for storage.
      1. A public grain warehouseman who is licensed or is applying for licenses to operate two (2) or more public grain warehouses may furnish a single bond. This bond shall meet the requirements of this subchapter to cover all public grain warehouses within the state.
      2. In these cases, all public grain warehouses to be covered by the bond shall be deemed to be one (1) warehouse for purposes of determining the amount of bond required under subsection (a) of this section.
    1. The aggregate licensed capacity of all the warehouses shall be used in determining the amount of the bond.
    1. Any deficiency in the net assets required by § 2-17-217 shall be supplied by an increase in the amount of the warehouseman's bond.
    2. In any other case in which the Public Grain Warehouse Commissioner finds that conditions exist which warrant requiring additional bond, there shall be added to the amount of the bond such further amount as determined to be reasonable by the commissioner.
    1. The commissioner may make exceptions to the bonding requirements of this section for good cause shown upon a finding that the requirements would substantially impair the warehouseman's ability to continue operations as a public grain warehouse and that the exception will not materially affect the protection of storage receipt holders under this subchapter.
    2. The exceptions must be reviewed at least annually.

History. Acts 1979, No. 83, § 16; A.S.A. 1947, § 77-1316.

Case Notes

Sellers Not Protected.

A bond issued to a grain warehouseman covers only those who hold warehouse receipts for grain stored; it does not cover a farmer who sells his or her grain to warehouseman but does not receive the promised payment. Farm Bureau Mut. Ins. Co. v. Wright, 285 Ark. 228, 686 S.W.2d 778 (1985).

2-17-211. Issuance or denial of license.

  1. Upon satisfaction of the requirements of this subchapter and any applicable rules by an applicant, the Public Grain Warehouse Commissioner shall issue a license to operate a public grain warehouse.
    1. If after proper application the commissioner denies any person a license to operate a public grain warehouse, the commissioner shall transmit immediately to the applicant, by certified mail, an order so providing, which shall state the reasons for the denial.
      1. In the event the applicant is dissatisfied with the decision of the commissioner, the applicant may request a hearing with the commissioner to appear and defend its compliance with all appropriate rules or give evidence that all deficiencies have been corrected.
        1. A hearing shall be held within ninety (90) days of the request.
        2. If after the hearing the commissioner denies the applicant a license, the commissioner shall transmit immediately to the applicant by certified mail an order so providing which shall state the reasons for the denial.
      2. In the event the applicant is dissatisfied with the decision of the commissioner after the hearing, the applicant may institute proceedings for judicial review in the circuit court of the county where the public grain warehouse is located or in the Pulaski County Circuit Court within thirty (30) days after service upon the applicant of the commissioner's final order, under § 25-15-212.

History. Acts 1979, No. 83, § 10; A.S.A. 1947, § 77-1310.

2-17-212. Posting of license.

Immediately upon receipt of his or her license or of any modification or extension thereof, the public grain warehouseman shall post it and thereafter keep it posted, until suspended or terminated, in a conspicuous place in the office of the public grain warehouse to which the license applies where receipts issued by the public grain warehouseman are delivered to depositors.

History. Acts 1979, No. 83, § 11; A.S.A. 1947, § 77-1311.

2-17-213. Annual license fee.

Subsequent to the issuance of an initial license under this subchapter, every applicant shall pay an annual license fee based upon the capacity of the warehouse. The fee shall be determined by the Public Grain Warehouse Commissioner but shall be no less than two hundred fifty dollars ($250) nor more than eight hundred dollars ($800).

History. Acts 1979, No. 83, § 7; A.S.A. 1947, § 77-1307; Acts 1993, No. 783, § 3.

2-17-214. Renewal of license.

  1. If a public grain warehouseman desires to renew his or her license for an additional year, application for the renewal shall be made on a form prescribed by the Public Grain Warehouse Commissioner.
  2. At least sixty (60) days before the expiration of each license, the commissioner shall notify each public grain warehouseman of the date of the expiration and furnish the public grain warehouseman with the renewal form.

History. Acts 1979, No. 83, § 12; A.S.A. 1947, § 77-1312.

2-17-215. Suspension, cancellation, or revocation of licenses.

  1. If a public grain warehouseman is convicted of any crime involving fraud or deceit or if the Public Grain Warehouse Commissioner determines that any public grain warehouseman has violated any of the provisions of this subchapter or any of the rules adopted by the commissioner under this subchapter, the commissioner may suspend, cancel, or revoke the license of the public grain warehouseman.
    1. All proceedings for the suspension, cancellation, or revocation of licenses shall be before the commissioner. The proceedings shall be in accordance with rules which shall be adopted by the commissioner.
      1. No suspension, cancellation, or revocation of any license is lawful unless, before the institution of the proceedings, the commissioner has given notice by mail to the licensee of facts or conduct warranting the intended action and the licensee has been given an opportunity to show compliance with all lawful requirements for the retention of the license.
      2. If the commissioner finds that public health, safety, or welfare imperatively requires emergency action and incorporates a finding to that effect in its order, summary suspension of a license may be ordered pending proceedings for revocation or other action, which proceedings shall be promptly instituted and determined.
        1. Whenever the commissioner shall suspend, cancel, or revoke any license, he or she shall prepare an order so providing which shall state the reason or reasons for the suspension, cancellation, or revocation.
        2. The order shall be sent by certified mail by the commissioner to the licensee at the address of the public grain warehouse licensed.
        3. Within thirty (30) days after service upon the licensee of the order, the licensee, if dissatisfied with the order of the commissioner, may institute proceedings for judicial review in the circuit court of the county where the public grain warehouse is located or in the Pulaski County Circuit Court.
  2. In case a license issued to a public grain warehouseman expires or is suspended, revoked, or cancelled by the commissioner or his or her designated representative, the license shall be immediately returned to the commissioner, and the public grain warehouseman shall forthwith comply with the provisions of § 2-17-237.

History. Acts 1979, No. 83, § 13; A.S.A. 1947, § 77-1313.

2-17-216. Replacement of license.

Upon satisfactory proof of the loss or destruction of a license issued to a public grain warehouseman, a duplicate or a new license may be issued under the same number.

History. Acts 1979, No. 83, § 14; A.S.A. 1947, § 77-1314.

2-17-217. Net assets required.

    1. Above all exemptions and liabilities, each public grain warehouseman shall have and maintain total net assets available for the payment of any indebtedness arising from the conduct of the public grain warehouse in an amount equal to at least ten cents (10¢) multiplied by the maximum number of bushels of grain for which the public grain warehouse is licensed.
      1. No person may be licensed as a public grain warehouseman unless he or she has available net assets of at least ten thousand dollars ($10,000).
      2. Any deficiency in net assets required above the minimum of ten thousand dollars ($10,000) may, at the discretion of the Public Grain Warehouse Commissioner, be supplied by a commensurate increase in the amount of the public grain warehouseman's bond.
        1. In determining total available net assets, credit may be given for insurable assets such as buildings, machinery, equipment, and merchandise inventory only to the extent of the current market value of the assets and only to the extent that the assets are protected by insurance against loss or damage.
        2. The insurance shall be in the form of lawful policies issued by one (1) or more insurance companies authorized to do business and subject to service of process in suits brought in this state, and which provide that no cancellation shall be effective unless thirty (30) days' advance notice of the cancellation is given to the commissioner.
  1. If a public grain warehouseman is licensed or is applying for license to operate two (2) or more public grain warehouses, the maximum total number of bushels which all the facilities will accommodate when stored in the manner customary to the warehouses, as determined by the commissioner, shall be considered in determining whether the public grain warehouseman meets the available net assets requirement of subsection (a) of this section.
  2. For the purposes of this section only, capital stock as such shall not be considered a liability.

History. Acts 1979, No. 83, § 9; A.S.A. 1947, § 77-1309.

2-17-218. Insurance required.

      1. At all times, every public grain warehouseman shall keep the grain stored in the public grain warehouse insured by an insurance company authorized to do business in this state.
      2. The grain is to be insured for its full market value against loss by fire, inherent explosion, lightning, and windstorm, and failure to do so shall make the public grain warehouseman liable for the grain.
    1. All policies shall provide that no cancellation shall be effective unless thirty (30) days' prior notice is given the Public Grain Warehouse Commissioner.
  1. If fire, inherent explosion, lightning, or windstorm shall destroy or damage all or part of the grain stored in any public grain warehouse, the public grain warehouseman shall, upon demand by the holder of any warehouse receipt for the grain and upon being presented with the warehouse receipt, make settlement for the fair market value at the time of the loss after deducting the warehouse charges.

History. Acts 1979, No. 83, § 20; A.S.A. 1947, § 77-1320.

2-17-219. Receipt of tendered grain.

    1. Every public grain warehouseman shall receive for storage or shipment, so far as the available capacity for storage of the public grain warehouse shall permit, all grain tendered to him or her in the usual course of business.
    2. However, a public grain warehouse owned and operated as a cooperative may decline to accept grain tendered by a nonmember if the cooperative reasonably believes that its available capacity will be required to serve the members of the cooperative.
    1. The depositor and the public grain warehouseman may agree upon a sample taken from the lot of grain to be offered for storage as being a true and representative sample.
    2. The depositor and the public grain warehouseman may agree upon the grade of the grain offered for storage, and a warehouse receipt may be issued on the agreed grade.

History. Acts 1979, No. 83, § 17; A.S.A. 1947, § 77-1317.

2-17-220. Receipts and records.

    1. Receipts must be issued for all grain stored in a warehouse in accordance with rules adopted under this subchapter.
    2. Receipts need not be issued against nonstorage grain, but each warehouseman shall keep accurate records of the weights, kinds, and grades, if graded, of all lots of nonstorage grain received into and delivered from his or her warehouse.
  1. Whenever the purpose for which any lot of nonstorage grain was received into a warehouse is changed so that its approximate delivery period from the warehouse becomes indeterminate, receipts shall be issued to cover the grain.
  2. Records required under this section with respect to nonstorage grain shall be retained, as a part of the records of the warehouse, for a period of one (1) year after December 31 of the year in which the lot of nonstorage grain is delivered from the warehouse.

History. Acts 1979, No. 83, § 25; 1983, No. 264, § 2; A.S.A. 1947, § 77-1325.

2-17-221. Contents of receipts.

  1. Every receipt issued for grain stored in a public grain warehouse shall conform to the requirements of § 4-7-202 and in addition shall embody within its written or printed terms:
    1. A statement that the holder of the receipt or the depositor of the grain shall demand the delivery of the grain on or before a date not later than one (1) year from the date specified by the public grain warehouseman;
    2. The net weight, number of bushels, and the percentage of dockage;
    3. The words “NOT NEGOTIABLE”, or “NEGOTIABLE”, according to the nature of the receipt, clearly and conspicuously printed or stamped thereon; and
    4. That the holder of the receipt or the depositor of the grain shall demand the delivery of the grain not later than the expiration of one (1) year from the date of the receipt.
    1. Every receipt, whether negotiable or nonnegotiable, issued for grain stored in a warehouse shall specify a period, not exceeding one (1) year, for which the grain is accepted for storage under this subchapter.
    2. The warehouseman shall, in the absence of some lawful excuse, issue a new receipt for a further specified period not to exceed one (1) year, provided that the following conditions are met:
      1. Demand for issuance of a new receipt;
      2. Surrender of the old receipt by the lawful holder at or before the expiration of the period specified therein; and
      3. An offer to satisfy the warehouseman's lien.
  2. Every negotiable receipt issued shall, in addition to conforming with the requirements of subsection (a) of this section, embody within its written or printed terms a form of endorsement which may be used by the depositor or his or her authorized agent for showing the ownership of, and liens, mortgages, or other encumbrances on, the grain covered by the receipt.
  3. A public grain warehouseman shall not insert any language in any warehouse receipt or make any contract with respect to any warehouse receipt which purports to limit the liabilities or responsibilities imposed on him or her by law.

History. Acts 1979, No. 83, § 26; A.S.A. 1947, § 77-1326.

Case Notes

Negotiable Receipts.

Warehouse receipts being negotiable instruments, their transfer carried the title to the cotton represented by them, subject to outstanding superior title. Sewell v. Federal Compress & Whse. Co., 194 Ark. 199, 106 S.W.2d 209 (1937) (decision under prior law).

2-17-222. Preparation of forms for warehouse receipts.

  1. The Public Grain Warehouse Commissioner shall prescribe the form of all warehouse receipts, and no other character or form of warehouse receipt shall be issued except those so authorized.
  2. The commissioner shall be authorized to have printed all warehouse receipts issued by public grain warehousemen.
  3. The cost of printing and distribution of warehouse receipts shall be charged to the grain warehouse.

History. Acts 1979, No. 83, § 27; A.S.A. 1947, § 77-1327.

2-17-223. Numbering of receipts.

All warehouse receipts issued by a public grain warehouse shall be numbered consecutively. No two (2) receipts bearing the same number shall be issued from the same warehouse during any one (1) year, except in the case of a lost or destroyed receipt.

History. Acts 1979, No. 83, § 28; A.S.A. 1947, § 77-1328.

2-17-224. Copy of receipts.

At least one (1) copy of all receipts shall be made. All copies shall have clearly and conspicuously printed or stamped on them the words “COPY — NOT NEGOTIABLE”.

History. Acts 1979, No. 83, § 29; A.S.A. 1947, § 77-1329.

2-17-225. Accuracy of receipts.

No warehouse receipt shall be issued except upon actual delivery of grain into storage in the warehouse from which it purports to be issued, nor shall any receipt be issued for a greater quantity of grain than was contained in the lot or parcel received for storage, nor shall more than one (1) receipt be issued for the same lot of grain, except in cases where a receipt for a part of a lot is desired, and then the aggregate receipts for a particular lot shall cover that lot and no more.

History. Acts 1979, No. 83, § 30; A.S.A. 1947, § 77-1330.

2-17-226. Duty of warehouseman to deliver grain.

    1. It shall be the duty of the public grain warehouseman to deliver grain to the holder of a warehouse receipt within ten (10) days of the demand for the redemption of the receipt if no lawful excuse for not delivering the grain exists.
      1. In the event the public grain warehouseman fails to deliver grain to the holder of a warehouse receipt within ten (10) days of the demand, the holder of the warehouse receipt may make demand of the surety for payment under the bond.
        1. The surety has the responsibility to pay within fifteen (15) days following receipt by the surety of the notice of the demand for redemption.
        2. Any holder of a warehouse receipt issued by a public grain warehouseman who had made demand for redemption of the receipt, which demand was, without lawful excuse, not satisfied within ten (10) days, shall notify the Public Grain Warehouse Commissioner in writing. The holder of the receipt shall have the right to bring action against the public grain warehouseman and the surety on the public grain warehouseman's bond for payment of the market value of the grain represented by the warehouse receipt. The market value shall be determined as of the date of the demand, plus legal interest accrued from the date of the demand.
      1. In the event the public grain warehouseman is a self-insurer as provided in § 2-17-209, the holder of a warehouse receipt shall have the right to bring action against the public grain warehouseman to the extent of the amount posted in lieu of the bond.
        1. The commissioner shall pay to the holder of the warehouse receipt, to the extent of the bond posted, any judgment obtained by the holder of a warehouse receipt against a self-insurer.
        2. The commissioner may also pay to the holder of a warehouse receipt the amount of the market value of the grain if the public grain warehouseman agrees to the payment.
    2. The license of the public grain warehouseman shall be suspended upon the payment until such time as the warehouseman posts a bond under this subchapter or posts with the commissioner a sum equivalent to that paid by the commissioner on behalf of the warehouseman.
    1. In all actions in which judgment is rendered against any surety company under the provisions of this section, if it appears from evidence that the surety company has willfully and without just cause refused to pay the loss upon demand, the court, in rendering judgment, shall allow the plaintiff the amount of the plaintiff's expenses, including court costs and attorney's fees, to be recovered and collected as part of the costs.
    2. The amount of any payment of costs and attorney's fees under this subsection will not reduce the surety's liability on its bond.

History. Acts 1979, No. 83, § 31; A.S.A. 1947, § 77-1331.

2-17-227. Partial delivery.

If a warehouseman delivers only a part of a lot of grain for which he or she has issued a negotiable receipt under this subchapter, he or she shall take up and cancel the receipt and issue a new receipt in accordance with the rules in this subchapter for the undelivered portion of the grain. The new receipt shall show the date of issuance and also indicate the number and date of the receipt first issued.

History. Acts 1979, No. 83, § 32; A.S.A. 1947, § 77-1332.

2-17-228. Return of receipt.

  1. Except as permitted by law or by the rules in this subchapter, a warehouseman shall not deliver grain for which he or she has issued a negotiable receipt until the receipt has been returned to him or her and cancelled. He or she shall not deliver grain for which he or she has issued a nonnegotiable receipt until the receipt has been returned to him or her or until he or she has obtained a written order for the receipt from the person lawfully entitled to the delivery or his or her authorized agent.
  2. Before delivery is made of the last portion of a lot of grain covered by a nonnegotiable receipt, the receipt itself shall be surrendered.

History. Acts 1979, No. 83, § 33; A.S.A. 1947, § 77-1333.

2-17-229. Verification of signature.

  1. Each person to whom a nonnegotiable receipt is issued shall furnish the warehouseman with a statement in writing, indicating the person having power to authorize delivery of grain covered by the receipt, together with the bona fide signature of the person.
  2. No licensed warehouseman shall honor an order for the release of grain covered by a nonnegotiable receipt until he or she has first ascertained that the person issuing the order has authority to order the release and that the signature of the releasing party is genuine.

History. Acts 1979, No. 83, § 34; A.S.A. 1947, § 77-1334.

2-17-230. Sale or pledge of receipts.

A public grain warehouseman may make a valid sale or pledge of any warehouse receipts issued for grain of which the warehouseman is the owner, either solely or jointly in common with others. The recital of ownership in the receipt shall constitute notice of the right to sell or pledge the grains and of the title of specific lien of the transferee or pledgee upon the warehouseman's grain represented by the receipts.

History. Acts 1979, No. 83, § 35; A.S.A. 1947, § 77-1335.

2-17-231. Accepting grain for shipment.

  1. If grain is offered for storage in any licensed public grain warehouse and the public grain warehouseman does not have storage space to handle the grain, the public grain warehouseman, with the written consent of the owner, may accept grain for shipment to another public grain warehouse where storage is available.
  2. The receipt to cover grain to be transported to and stored in another public grain warehouse shall embody within its written or printed terms, in addition to the requirements of § 2-17-221, the name and location of the public grain warehouse to which the grain will be shipped for storage.

History. Acts 1979, No. 83, § 36; A.S.A. 1947, § 77-1336.

2-17-232. Grain inspector.

During all regular business hours, each public grain warehouse shall employ a grain inspector, who may be the public grain warehouseman himself or herself if the public grain warehouseman is a natural person. He or she shall inspect and weigh all grain received by the warehouse and shall be responsible for the accuracy of weights noted on all warehouse receipts.

History. Acts 1979, No. 83, § 18; A.S.A. 1947, § 77-1318.

2-17-233. Duty to maintain quality of grain.

  1. It shall be the public grain warehouseman's duty and obligation to condition and maintain the quantity and quality of all grain as receipted.
    1. If the condition of any grain offered for storage is such that it probably will adversely affect the condition of grain in the public grain warehouse, the public grain warehouseman shall not receive the grain for storage or store the grain.
    2. If the public grain warehouse has separate bins or is equipped with proper conditioning apparatus, the public grain warehouseman may receive the grain for storage in separate bins or may condition it and then store it in a manner which will not lower the grade of other grain.

History. Acts 1979, No. 83, § 19; A.S.A. 1947, § 77-1319.

2-17-234. Records to be maintained.

  1. Every public grain warehouseman shall keep, in a place of safety, complete, separate, and correct records and accounts pertaining to the public grain warehouse. These shall include, but not be limited to, records and accounts of all grain received and withdrawn, all unissued receipts and tickets in its possession, copies of all receipts and tickets issued by it, and the receipts and tickets returned to and cancelled by it.
  2. The records shall be retained by the public grain warehouseman for a period of five (5) years.

History. Acts 1979, No. 83, § 21; A.S.A. 1947, § 77-1321.

2-17-235. Examinations and inspections.

      1. Every public grain warehouse shall be examined by the Public Grain Warehouse Commissioner, each year.
      2. The cost of the examination shall be included in the annual license fee.
      1. The Public Grain Warehouse Commissioner, at his or her discretion, may make additional examinations of any public grain warehouse at any time.
      2. If any material discrepancy is found as a result of additional examination, the cost of the examination is to be paid by the public grain warehouseman.
  1. Upon application for license renewal, every public grain warehouse shall submit a copy of its financial statement to the commissioner. The financial statement shall have been prepared by a certified public accountant and sworn to by the certified public accountant and the public grain warehouseman.
  2. The commissioner may, at his or her discretion, inspect the public grain warehouse's business, facilities, equipment, inventories, property, books, records, accounts, papers, minutes of proceedings held at the public grain warehouse, and any other records which the commissioner deems relevant to the operation of the public grain warehouse.
  3. All scales used for the weighing of property in public grain warehouses shall be subject to tests during regular business hours by the Arkansas Bureau of Standards of the State Plant Board.
  4. All records, reports, and findings of the commissioner required or issued under this subchapter may be released to any interested person and shall be made available to public inspection.

History. Acts 1979, No. 83, § 22; A.S.A. 1947, § 77-1322.

Publisher's Notes. Acts 1993, Nos. 610 and 624, § 1, provided:

“The Arkansas Bureau of Standards, created by Act 482 of 1963, as amended, the same being A.C.A. 4-18-201 et seq., and its functions, powers, duties, assets, properties, and appropriations are transferred by a type 2 transfer [see § 25-2-105] to the State Plant Board.”

2-17-236. Insolvent warehouses.

  1. If it shall be discovered that any public grain warehouse is insolvent or that its continuance in business will seriously jeopardize the interest of its creditors or grain depositors, it shall be the duty of the Public Grain Warehouse Commissioner to close the warehouse, to take charge of all the property and effects thereof, and to notify the surety.
  2. Upon taking charge of any warehouse, the commissioner shall, as soon as practicable, ascertain by a thorough examination into its affairs its actual financial condition. Whenever the commissioner shall become satisfied that the corporation cannot resume business or liquidate its indebtedness to the satisfaction of its creditors, the commissioner shall report the fact of its insolvency to the Attorney General. Immediately upon receipt of the notice, the Attorney General shall institute proper proceedings in the proper court for the purpose of having a receiver appointed.

History. Acts 1979, No. 83, § 23; A.S.A. 1947, § 77-1323.

2-17-237. Discontinuance of business.

  1. Any person operating a public grain warehouse who desires to discontinue the operation at the expiration of his or her license or whose license is suspended, revoked, or cancelled by the Public Grain Warehouse Commissioner or his or her designated representative shall notify the commissioner, all holders of warehouse receipts, and all parties storing grain in the public grain warehouse, if known, or if not known, by advertising in the newspaper of largest general circulation in the community in which the public grain warehouse is located weekly for four (4) consecutive weeks, at least thirty (30) days before the date of expiration of his or her license, of his or her intention to discontinue the public grain warehouse business.
  2. The owners of the grain shall remove or cause to be removed their grain from the public grain warehouse before the expiration of the license.

History. Acts 1979, No. 83, § 24; A.S.A. 1947, § 77-1324.

2-17-238. Disposition of revenues.

All revenues collected under the provisions of this subchapter by the State Plant Board shall be deposited into the Plant Board Fund to be used for the maintenance, operation, support, and improvement of the board.

History. Acts 1979, No. 83, § 38; A.S.A. 1947, § 77-1338; Acts 1993, No. 783, § 4.

Subchapter 3 — Public Warehouses — Title to Grain

Effective Dates. Acts 1981, No. 401, § 7: Mar. 10, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that Arkansas grain producers are experiencing severe losses due to their stored grain in public warehouses being sold or encumbered by the public grain warehousemen without their authorization, and that this act is immediately necessary to clarify the law and grant protection to Arkansas farmers. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

Ark. L. Notes.

Pedersen, Crop Financing: A Guide to Arkansas Law, 1988 Ark. L. Notes 31.

Copeland, A Statutory Primer: Article 2 of the U.C.C. — When Do Its Rules Apply?, 1990 Ark. L. Notes 39.

Ark. L. Rev.

Note, Act 401 of the Public Grain Warehouse Law: An Exception to the U.C.C. Concept of Voidable Title, 37 Ark. L. Rev. 293.

Note, Simmons First National Bank v. Wells: An Interpretation of the Uniform Commercial Code's Consignment Rule, 37 Ark. L. Rev. 312.

U. Ark. Little Rock L.J.

Survey — Business Law, 10 U. Ark. Little Rock L.J. 89.

Case Notes

Federal Agencies.

Although the Commodity Credit Corporation, an agency of the United States Department of Agriculture, is not a grower or producer protected under § 2-17-301 et seq., it is protected by § 2-17-201 et seq. which does not conflict with and was not repealed by § 2-17-301 et seq.Reynolds v. Commodity Credit Corp., 300 Ark. 441, 780 S.W.2d 15 (1989).

2-17-301. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Grain” means rice, soybeans, wheat, corn, rye, oats, barley, flaxseed, sorghum, mixed grain, and other food grains, feed grains, and oil seeds;
  2. “Owner” means the farmer who grows and produces grain and includes the owner of the land from which the grain is produced to the extent that he or she has an interest in the grain, and includes persons, firms, and corporations engaged in the growing and producing of grain whether it be as tenant, renter, landowner, or otherwise; and
  3. “Public grain warehouseman” means any person, firm, or corporation who operates any building, structure, or other protected enclosure used for the purpose of storing grain for a consideration.

History. Acts 1981, No. 401, § 1; A.S.A. 1947, § 77-1339.

Case Notes

Owner.

While lessor may have come within the definition of “owner” as set forth in subdivision (3) of this section because of lessor's interest in the grain under its statutory landlord's lien, under § 18-41-101 this lien existed for only six months. Rufus Comer Farms v. First State Bank, 47 Ark. App. 3, 884 S.W.2d 265 (1994).

Cited: Simmons First Nat'l Bank v. Wells, 279 Ark. 204, 650 S.W.2d 236 (1983).

2-17-302. Applicability.

The provisions of this subchapter shall apply to all public grain warehousemen and to the operations of public grain warehouses, unless the public grain warehouse is licensed under the provisions of the United States Warehouse Act, as amended.

History. Acts 1981, No. 401, § 5; A.S.A. 1947, § 77-1342.

U.S. Code. The United States Warehouse Act referred to in this section is codified as 7 U.S.C. § 241 et seq.

2-17-303. Title to grain.

  1. Ownership of grain shall not change by reason of an owner's delivering grain to a public grain warehouseman. No public grain warehouseman shall sell or encumber any grain in his or her possession unless the owner of the grain has by written document transferred title of the grain to the warehouseman.
  2. Notwithstanding any provision of the Uniform Commercial Code, as amended, § 4-1-101 et seq., to the contrary or any other law to the contrary, all sales and encumbrances of grain by public grain warehousemen are void and convey no title unless the sales and encumbrances are supported by written documents executed by the owners specifically conveying title to the grain to the public warehousemen.

History. Acts 1981, No. 401, § 2; A.S.A. 1947, § 77-1340.

Research References

U. Ark. Little Rock L.J.

Adams, “Clear Title” for Farm Products: Congress and the Arkansas Legislature Attempt to Solve a Troublesome Problem, 10 U. Ark. Little Rock L.J. 619.

Case Notes

Applicability.

A federally licensed warehouse is exempt from this section. In re Bearhouse, Inc., 84 B.R. 552 (Bankr. W.D. Ark. 1988).

Landlord's claim for rent from the proceeds of grain sales was not protected by this section. Rufus Comer Farms v. First State Bank, 47 Ark. App. 3, 884 S.W.2d 265 (1994).

Advance Payments.

Unless transfer of title from a producer to a warehouseman has occurred, the grain is to be regarded as stored rather than sold, so the giving and taking of an advance payment does not remove the storer from the bond's protection under § 2-17-209. Tucker v. Durham, 285 Ark. 264, 686 S.W.2d 402 (1985).

Specific Conveyance by Written Document.

The language of this section that no title shall be transferred unless title is specifically conveyed to the warehousemen by a written document signed by the owner must be taken literally, and to do less would be to disregard the plain intent and purpose of the statute; thus, language that could be interpreted to mean that the owner was selling his or her grain was not sufficient to comply with the dictates of this section. Cooper, Inc. v. Farm Bureau Mut. Ins. Co., 289 Ark. 218, 711 S.W.2d 155 (1986).

Voidable Sales.

This section does not say a farmer can void an outright sale he or she makes to a warehouseman; rather, only a sale made by a warehouseman of grain delivered to him or her or storage can be voided. Farm Bureau Mut. Ins. Co. v. Wright, 285 Ark. 228, 686 S.W.2d 778 (1985).

This section allows an owner to void a sale made by a warehouseman. Rufus Comer Farms v. First State Bank, 47 Ark. App. 3, 884 S.W.2d 265 (1994).

Cited: Simmons First Nat'l Bank v. Wells, 279 Ark. 204, 650 S.W.2d 236 (1983).

2-17-304. Waiver of rights.

Any owner may, by written document signed by him or her or his or her agent, waive any and all rights conferred upon the owner by this subchapter.

History. Acts 1981, No. 401, § 4; A.S.A. 1947, § 77-1341.

Subchapter 4 — Public Warehouses — Receivership

Effective Dates. Acts 1983, No. 342, § 18: Mar. 7, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that farmers would be better served if state law would authorize the Grain Warehouse Commissioner to petition the proper court to serve as receiver in instances where the warehouse becomes insolvent; and that this act is immediately necessary to so provide. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

2-17-401. Definitions.

  1. As used in this subchapter, unless the context otherwise requires:
    1. “Commissioner” means the Public Grain Warehouse Commissioner, who shall be the Director of the State Plant Board or his or her designated representative;
    2. “License” means a license issued under § 2-17-201 et seq.; and
    3. “Warehouse” means a public grain warehouse licensed under § 2-17-201 et seq.
  2. All other terms in this subchapter shall have the same meaning as the same terms used in the Arkansas Public Grain Warehouse Law, § 2-17-201 et seq.

History. Acts 1983, No. 342, § 1; A.S.A. 1947, § 77-1343.

2-17-402. Filing of petition.

    1. Following summary suspension of a license under § 2-17-215 or following a suspension or revocation of a license as otherwise provided in § 2-17-201 et seq., the Public Grain Warehouse Commissioner in his or her discretion may file a verified petition in the proper court requesting that the commissioner be appointed as a receiver to take custody of grain stored in the licensee's warehouse and to provide for the disposition of those assets in the manner provided in this subchapter and under the supervision of the court.
    2. The petition shall be filed in the county in which the warehouse is located.
    3. The proper court shall appoint the commissioner as receiver.
  1. Upon the filing of the petition, the court shall issue ex parte such temporary orders as may be necessary to preserve or protect the assets in receivership, or the value thereof, and the rights of depositors, until a plan of disposition is approved.

History. Acts 1983, No. 342, § 2; A.S.A. 1947, § 77-1344.

Case Notes

Cited: Reynolds v. Commodity Credit Corp., 300 Ark. 441, 780 S.W.2d 15 (1989).

2-17-403. Plan for disposition of grain.

  1. A petition filed by the Public Grain Warehouse Commissioner under § 2-17-402 shall be accompanied by the commissioner's plan for disposition of stored grain.
    1. The plan may provide for the pro rata delivery of part or all of the stored grain to depositors holding warehouse receipts or unpriced scale tickets;
    2. The plan may provide for the sale under the supervision of the commissioner of part or all of the stored grain for the benefit of those depositors; or
    3. The plan may provide for any combination thereof, as the commissioner in his or her discretion determines to be necessary to minimize losses.

History. Acts 1983, No. 342, § 3; A.S.A. 1947, § 77-1345.

Case Notes

Cited: Tucker v. Durham, 285 Ark. 264, 686 S.W.2d 402 (1985).

2-17-404. Date for hearing.

  1. When a petition is filed by the Public Grain Warehouse Commissioner under § 2-17-402, the clerk of court shall set a date for hearing on the commissioner's proposed plan of disposition at a time not less than ten (10) nor more than fifteen (15) days after the date the petition is filed.
    1. Copies of the petition, the notice of hearing, and the commissioner's plan of disposition shall be served upon the licensee and upon the surety company issuing the licensee's bond in the manner required for service of an original notice.
    2. A delay in effecting service upon the licensee or surety shall not be cause for denying the appointment of a receiver and shall not be grounds for invalidating any action or proceeding in connection therewith.

History. Acts 1983, No. 342, § 4; A.S.A. 1947, § 77-1346.

2-17-405. Notice and parties.

  1. The Public Grain Warehouse Commissioner shall cause a copy of each of the documents served upon the licensee under § 2-17-404 to be mailed by ordinary mail to every person holding a warehouse receipt or unpriced scale ticket issued by the licensee, as determined by the records of the licensee or the records of the commissioner.
  2. The failure of any person referred to in this section to receive the required notification shall not invalidate the proceedings on the petition for the appointment of a receiver or any portion thereof.
  3. Persons referred to in this section are not parties to the action unless admitted by the court upon application therefor.

History. Acts 1983, No. 342, § 5; A.S.A. 1947, § 77-1347.

2-17-406. Publication of appointment.

When appointed as a receiver under this subchapter, the Public Grain Warehouse Commissioner shall cause notification of the appointment to be published once each week for two (2) consecutive weeks in a newspaper of general circulation in each of the counties in which the licensee maintains a business location and in a newspaper of general circulation in this state.

History. Acts 1983, No. 342, § 6; A.S.A. 1947, § 77-1348.

2-17-407. Designation of employee to appear.

The Public Grain Warehouse Commissioner may designate an employee of the commissioner to appear on behalf of the commissioner in any proceedings before the court with respect to the receivership and to exercise the functions of the commissioner as receiver, except that the commissioner shall:

  1. Determine whether or not to petition for the appointment as receiver;
  2. Approve the proposed plan for disposition of stored grain;
  3. Approve the proposed plan for distribution of any cash proceeds; and
  4. Approve the proposed final report.

History. Acts 1983, No. 342, § 7; A.S.A. 1947, § 77-1349.

2-17-408. Arkansas Administrative Procedure Act.

The actions of the Public Grain Warehouse Commissioner in connection with petitioning for appointment as a receiver and all actions under such appointment shall not be subject to the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 1983, No. 342, § 8; A.S.A. 1947, § 77-1350.

2-17-409. Joining of surety.

  1. When the Public Grain Warehouse Commissioner is appointed as receiver under this subchapter, the surety on the bond of the licensee shall be joined as a party defendant by the commissioner.
    1. If required by the court, the surety shall pay the bond proceeds, or so much thereof as the court finds necessary, into the court.
    2. When so paid, the surety shall be absolutely discharged from any further liability under the bond to the extent of the payment.

History. Acts 1983, No. 342, § 9; A.S.A. 1947, § 77-1351.

2-17-410. Time for filing claims.

  1. When appointed as receiver under this subchapter, the Public Grain Warehouse Commissioner is authorized to give notice in the manner specified by the court to persons holding warehouse receipts or unpriced scale tickets issued by the licensee to file their claims within sixty (60) days after the date of appointment.
  2. Failure to file a timely claim shall defeat the claim with respect to the surety bond and any grain or proceeds from the sale of grain, except to the extent of any excess remaining after all timely claims are paid in full.

History. Acts 1983, No. 342, § 10; A.S.A. 1947, § 77-1352.

2-17-411. Merchandiser to effect sale.

  1. When the court approves the sale of stored grain, the Public Grain Warehouse Commissioner shall employ a merchandiser to effect the sale of those commodities.
  2. A person employed as a merchandiser must meet the following requirements:
    1. The person shall be experienced or knowledgeable in the operation of warehouses licensed under the Arkansas Public Grain Warehouse Law, § 2-17-201 et seq., and if the person has ever held a license issued under the Arkansas Public Grain Warehouse Law, § 2-17-201 et seq., the person shall never have had that license suspended or revoked;
    2. The person shall be experienced or knowledgeable in the marketing of agricultural products; and
    3. The person shall not be the holder of a warehouse receipt or scale ticket issued by the licensee and shall not have a claim against the licensee, whether as a secured or unsecured creditor, and otherwise shall not have any pecuniary interest in the licensee or the licensee's business.
    1. The merchandiser shall be entitled to reasonable compensation as determined by the commissioner.
    2. A sale of grain shall be made in a commercially reasonable manner and under the supervision of the warehouse section of the commissioner.
    3. The commissioner shall have authority to sell the stored grain, notwithstanding provisions of the Uniform Commercial Code, § 4-1-101 et seq., and any stored grain so sold shall be free of all liens and other encumbrances.

History. Acts 1983, No. 342, § 11; A.S.A. 1947, § 77-1353.

2-17-412. Distribution of grain or proceeds.

  1. The plan of disposition, as approved by the court, shall provide for the distribution of the stored grain or the proceeds from the sale of stored grain or the proceeds from any surety bond, or any combination thereof, less expenses incurred by the Public Grain Warehouse Commissioner in connection with the receivership, to depositors on a pro rata basis as their interests are determined.
  2. Distribution shall be without regard to any setoff, counterclaim, or storage lien or charge.

History. Acts 1983, No. 342, § 12; A.S.A. 1947, § 77-1354.

2-17-413. Temporary continuation of business.

The Public Grain Warehouse Commissioner may, with the approval of the court, continue the operation of all, or any part of, the business of the licensee on a temporary basis and take any other course of action or procedure which will serve the interests of the depositors.

History. Acts 1983, No. 342, § 13; A.S.A. 1947, § 77-1355.

2-17-414. Reimbursement of expenses.

  1. The Public Grain Warehouse Commissioner shall be entitled to reimbursement out of stored grain or proceeds held in receivership for all expenses incurred as court costs or in handling and disposing of stored grains and for all other costs directly attributable to the receivership.
  2. The right of reimbursement of the commissioner shall be before any claims against the stored grain or proceeds of sale and shall constitute a claim against the surety bond of the licensee.

History. Acts 1983, No. 342, § 14; A.S.A. 1947, § 77-1356.

2-17-415. Distribution plan.

    1. In the event the approved plan of disposition requires the sale of stored grain or the distribution of proceeds from the surety bond, or both, the Public Grain Warehouse Commissioner shall submit to the court a proposed plan of distribution of those proceeds.
    2. Upon such notice and hearing as may be required by the court, the court shall accept or modify the proposed plan.
  1. When the plan is approved by the court and executed by the commissioner, the commissioner shall be discharged and the receivership terminated.

History. Acts 1983, No. 342, § 15; A.S.A. 1947, § 77-1357.

2-17-416. Final report.

At the termination of the receivership, the Public Grain Warehouse Commissioner shall file a final report containing the details of his or her actions, together with such additional information as the court may require.

History. Acts 1983, No. 342, § 16; A.S.A. 1947, § 77-1358.

Chapter 18 Seeds

Preambles. Acts 1931, No. 73, contained a preamble which read:

“Whereas, the necessity for high grade planting seed for agricultural crops is hereby recognized, the purpose of this act shall be to enable farmers to secure pure bred agricultural seeds true to variety, free from noxious weed seeds and free from plant diseases transmittable through the agency of planting seed and free from insect infestation … .”

Effective Dates. Acts 1997, No. 317, § 8: Mar. 3, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 10 of the First Extraordinary Session of 1995 abolished the Joint Interim Committee on Agriculture and Economic Development and in its place established separate House and Senate Committees; that various sections of the Arkansas Code refer to the Joint Interim Committee on Agriculture and Economic Development and should be corrected to refer to the House and Senate Interim Committees; that this act so provides; and that this act should go into effect immediately in order to make the laws compatible as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Research References

Am. Jur. 3 Am. Jur. 2d, Agri., § 51.

C.J.S. 3 C.J.S., Agri., § 84 et seq.

2-18-101. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Board” means the State Plant Board;
  2. “Person” means individuals, partnerships, corporations, associations, or two (2) or more individuals having a joint or common interest; and
  3. “Seed” means any agricultural seeds or plants used to produce a crop.

History. Acts 1931, No. 73, § 1; Pope's Dig., § 12334; A.S.A. 1947, § 77-315.

2-18-102. Penalty — Revocation of certificate.

    1. Any person shall be guilty of a violation who:
      1. Falsely advertises or proclaims that seed has been certified by the State Plant Board;
      2. Uses any emblem, label, or language for the purpose of misleading a person into believing that seed has been certified by the board when it has not;
      3. Misuses any tag, label, or certificate issued by the board;
      4. Obtains or attempts to obtain certification for seed or plants by making false statements or misrepresentations to the board or to the board's inspectors, deputies, or agents;
      5. Having received a certificate, violates any of the rules of the board made under this chapter; or
      6. Violates any agreement made as a condition for receiving a certificate.
    2. Upon conviction, an offender shall be punished by a fine of not less than twenty-five dollars ($25.00) nor more than five hundred dollars ($500) for each offense.
    1. When the person holds a certificate from the board, the certificate, after a hearing before the Director of the State Plant Board has been given to the person, shall be revoked by the director regardless of whether a prosecution is commenced.
      1. Any person whose certificate is revoked by the director shall be entitled to an appeal to the board.
      2. The board's decision shall be final.

History. Acts 1931, No. 73, § 7; Pope's Dig., § 12354; A.S.A. 1947, § 77-320; Acts 2005, No. 1994, § 10.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (a)(1); and deleted “or” at the end of (a)(1)(A)-(D).

2-18-103. Investigation and certification.

    1. The State Plant Board is empowered to investigate and certify to varietal purity and fitness for planting of agricultural seed on request of the grower thereof.
      1. For this purpose, the board shall set up, in its rules, one (1) or more classifications of seed, designating the classifications as “Registered” and “Certified” or by any other one (1) or more names which it may specify; and
      2. It shall specify, in its rules, the standards which seed must meet and the methods by which seed must be handled in order to be certified under the classifications.
  1. Any person applying for certification of seed must, if required by the board, produce satisfactory evidence as to character, qualifications as a seed breeder, and possession of such facilities for the growing and handling of purebred seed as may be deemed necessary by the board.

History. Acts 1931, No. 73, § 3; Pope's Dig., § 12350; A.S.A. 1947, § 77-316.

Case Notes

Liability of Seller.

Where there was no warranty, express or implied, other than the certificate of the State Plant Board, seller was not liable for breach of warranty in the sale of such seed. Smith v. Tatum, 198 Ark. 802, 131 S.W.2d 619 (1939) (decision under prior law).

2-18-104. Rules.

The State Plant Board:

  1. Shall promulgate all rules necessary to carry into effect the purpose of this chapter, which is to provide supplies of high-grade seed, true to name and free from disease, for planting purposes;
  2. Shall make rules to protect the interest of breeders who have developed high-quality strains of seed; and
  3. May appoint or may authorize the Director of the State Plant Board to appoint such deputies as shall be necessary to carry into effect the purpose of this chapter.

History. Acts 1931, No. 73, § 4; Pope's Dig., § 12351; A.S.A. 1947, § 77-317.

Cross References. Rules authorized, § 2-16-207.

2-18-105. Fees.

  1. To cover costs of inspection and certification, the State Plant Board shall require reasonable fees of all applicants in advance. These fees shall be deposited into a separate fund and shall be used in carrying out the purposes of this chapter.
    1. To cover costs of promotion and advertising of certified seed, the board after a public hearing shall establish by rule promotion and advertising fees which shall be collected in advance. The fees shall be assessed upon the acreage grown for certified agricultural seed production or upon the number of certified tags and labels sold for production of certified seed from the acreage.
    2. Those fees collected for seed promotion and advertising shall be remitted by the board to the Arkansas Seed Dealers' Association and the Arkansas Seed Growers Association, or their successors, which shall establish and administer their own promotion and advertising programs.
    3. Before collecting the fees under this subsection or increasing those fees hereafter, the board shall seek the advice of the House Committee on Agriculture, Forestry, and Economic Development and the Senate Committee on Agriculture, Forestry, and Economic Development.

History. Acts 1931, No. 73, § 5; Pope's Dig., § 12352; A.S.A. 1947, § 77-318; Acts 1991, No. 955, § 1; 1997, No. 317, § 3; 2019, No. 315, § 13.

Amendments. The 2019 amendment substituted “rule” for “regulation” in the first sentence of (b)(1).

Cross References. Deposit of fees in State Treasury, § 2-16-104.

2-18-106. Certificates of inspection.

  1. Persons whose seed has met the standards set up by the State Plant Board and who have complied with all the provisions of this chapter and with all the rules of the board made under this chapter shall receive from the board the proper certificate of inspection designating the classification of seed.
  2. Each bag or other container of seed sold under the classification designated by a certificate of the board shall bear an appropriate tag or label securely attached to it.
  3. Certificates issued under the provisions of this section shall run one (1) crop season only.

History. Acts 1931, No. 73, § 6; Pope's Dig., § 12353; Acts 1985, No. 279, § 1; A.S.A. 1947, § 77-319.

2-18-107. Improper use of terms.

  1. It shall be unlawful for any person to use the terms “certified” or “registered” as applied to the quality of seed or plants or to use any other term applying to seed classifications promulgated by the State Plant Board, without first having applied for and received the proper certificate from the board.
  2. Any person violating the provisions of this section shall be punished as provided in § 2-18-102.

History. Acts 1931, No. 73, § 8; Pope's Dig., § 12355; A.S.A. 1947, § 77-321.

2-18-108. Intergovernmental cooperation.

In administering this chapter, the State Plant Board is authorized to cooperate to the fullest extent with other agencies of the state and federal government.

History. Acts 1931, No. 73, § 9; Pope's Dig., § 12356; A.S.A. 1947, § 77-322.

2-18-109. Aflatoxin levels.

The level of aflatoxin in Arkansas-grown grain and seed sold or distributed in this state shall be monitored by the State Plant Board.

History. Acts 1999, No. 1374, § 1.

2-18-110. Testing for aflatoxin.

Methods of sampling and analysis of the grain and seed described in § 2-18-109 shall meet the standards prescribed by the United States Grain Inspection, Packers and Stockyards Administration.

History. Acts 1999, No. 1374, § 2.

2-18-111. Rules regarding aflatoxin.

The State Plant Board may establish rules necessary to implement the provisions of §§ 2-18-109, 2-18-110, and this section.

History. Acts 1999, No. 1374, § 3.

2-18-112. Local legislation preemption — Definitions.

  1. As used in this section:
    1. “Local legislation” means any ordinance, motion, resolution, amendment, regulation, or rule adopted by a political subdivision of this state; and
    2. “Political subdivision” means a local governmental entity, including without limitation a city, county, township, or municipal corporation and any other body corporate and politic that is responsible for government activities in a geographical area smaller than that of the state.
  2. A political subdivision shall not:
    1. Regulate the registration, packaging, labeling, sale, storage, distribution, cultivation, any other use, or application of seeds; or
    2. Adopt or continue in effect local legislation relating to the registration, packaging, labeling, sale, storage, distribution, cultivation, any other use, or application of seeds.
  3. Local legislation in violation of this section is void and unenforceable.
  4. This section does not prohibit a city of the first class, a city of the second class, or an incorporated town from exercising the legitimate police powers of the city or town over building, planning, and zoning regulations under § 14-56-201 et seq., § 14-56-301 et seq., and § 14-56-401 et seq.

History. Acts 2017, No. 156, § 1.

Chapter 19 Fertilizers, Liming Materials, and Soil Amendment

Subchapter 1 — General Provisions

[Reserved.]

Subchapter 2 — Fertilizers

Cross References. Pipeline companies transporting ammonia and other substances composing fertilizer or its manufacture, § 23-15-105.

A.C.R.C. Notes. “References to “this subchapter” in §§ 2-19-1012-19-210 may not apply to § 2-19-211 which was enacted subsequently.

Effective Dates. Acts 1953, No. 221, § 3: approved Mar. 5, 1953. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the distribution of anhydrous ammonia and other fertilizers sold in bulk to the farmers of this state is being seriously hampered and that only the provisions of this act will alleviate this situation. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage.”

Acts 1981, No. 398, § 3: July 1, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the soils testing and research programs and facilities of the University of Arkansas have made substantial contributions to the agricultural and livestock industries in this state through information derived through research and testing that has led to improved uses of fertilizers and improved formulation of fertilizers used in crop and plant production; that the existing soils testing facilities and funds available for soils testing and research are not adequate to meet the agricultural and livestock needs of this state, and that the immediate passage of this act is necessary to enable the State Plant Board to collect sufficient fees from the inspection of fertilizer to provide the funds for the efficient and necessary operation of the plant board and the horticulture and soils testing and research facilities of the University of Arkansas, to provide the funds essential for the operation of existing programs and continued progress in the use of fertilizers in crop and plant production in this state, and that the immediate passage of this act is necessary to enable the plant board to collect said fees for the purposes set forth in this act. Therefore, an emergency is hereby declared to exist and this act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after July 1, 1981.”

Acts 1993, No. 783, § 13: Mar. 29, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly meeting in Regular Session that the provisions of this act are of critical importance to the state's ability to continue the duties, responsibilities, and functions of the State Plant Board. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

ALR.

Products liability for fertilizers, insecticides, pesticides, fungicides, weed killers, or articles used in application thereof. 12 A.L.R.4th 462.

Am. Jur. 3 Am. Jur. 2d, Agri., § 58.

C.J.S. 3 C.J.S., Agri., § 93 et seq.

2-19-201. Penalty.

  1. Any person selling or offering for sale any fertilizer or fertilizer material in violation of a provision of this subchapter, of a rule made under this subchapter, or of a notice issued under the authority of this subchapter shall be guilty of a violation.
  2. Upon conviction, an offender shall be fined in any sum not less than one hundred dollars ($100) nor more than five hundred dollars ($500).

History. Acts 1951, No. 106, § 10; A.S.A. 1947, § 77-714; Acts 2005, No. 1994, § 11; 2019, No. 315, § 14.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (a).

The 2019 amendment substituted “rule” for “regulation” in (a).

2-19-202. Registration required for fertilizer brands and materials — Licensing required for fertilizer blending and storage facilities — Definition.

    1. All manufacturers, jobbers, and manipulators of commercial fertilizers and of fertilizer materials to be used in the manufacture of fertilizer, who may desire to sell or offer for sale in Arkansas fertilizer and fertilizer materials, shall first file for registration with the State Plant Board, upon forms furnished by the board. The forms shall include the name of the brand of each fertilizer, fertilizer materials, or chemicals which they may desire to sell in the state, either by themselves or their agents, together with the names and addresses of the manufacturers or manipulators, and such other information as may be required by the board in its rules.
    2. A registrant shall not be required to register each grade of fertilizer that is formulated but shall report the mixed formulations on a monthly basis as required by § 2-19-209.
    3. All registrations must be approved by the board or its authorized agent before being effective.
    4. Registrations may be cancelled by the board for repeated flagrant violations of this subchapter, after notice and a hearing.
      1. Each commercial fertilizer registrant shall report the guaranteed analysis by net weight of each registered fertilizer brand and the name and address of the registrant.
      2. Except for specialty fertilizers as defined in subdivision (d)(2) of this section, no guaranteed analysis of complete fertilizer shall be allowed indicating fractional units of primary plant food.
      3. Raw materials may be registered under a guarantee of the actual plant food content.
      4. In the case of bone meal, the phosphoric acid content shall be stated as a total, and its actual nitrogen content shall be stated.
      5. In the case of rock phosphate, both the total and available phosphoric acid content shall be stated.
    1. All manufacturers, jobbers, blenders, and manipulators of commercial fertilizers and of fertilizer materials to be used in the manufacture of fertilizer, who may desire to sell or offer for sale in Arkansas fertilizer or fertilizer materials, shall first obtain a facility license from the board for each fertilizer blending or bulk storage facility which they operate.
    2. After notice and hearing, the board shall, by rules, promulgate the standards and criteria which it determines are necessary to license fertilizer blending or bulk storage facilities.
      1. The board may, under its rules, set and collect reasonable fertilizer brand registration and facility licensing fees.
      2. The fees shall be deposited into the Plant Board Fund of the State Treasury.
    1. All registrations shall expire on June 30 of each year.
  1. Any commercial fertilizer sold must contain a minimum of twenty (20) units of primary plant food, except for the following exemptions for special agricultural crop fertilizer formulations and for specialty fertilizers:
      1. Commercial fertilizers which are needed in special cases for special agricultural crop uses shall be permitted to be sold in less than the combined twenty-unit minimum of primary plant food elements.
        1. The special agricultural crop-use fertilizers with less than the twenty-unit minimum shall be permitted for sale only after the fertilizer grade is registered with the board.
        2. In order to register the fertilizer grade, the applicant shall submit a written justification which shall show the need for such special fertilizer grade and shall include the fertilizer materials to be used in the special agricultural crop fertilizer formulation.
        3. The board or its designee shall evaluate the formulation based on criteria established by rules of the board; and
      1. A “specialty fertilizer” is any fertilizer distributed primarily for nonfarm use, such as for home gardens, lawns, shrubs, flowers, golf courses, municipal parks, cemeteries, greenhouses, and nurseries.
      2. “Specialty fertilizer” includes a fertilizer used for research or experimental purposes.

History. Acts 1951, No. 106, § 1; 1957, No. 356, § 1; 1981, No. 398, § 1; A.S.A. 1947, § 77-701; Acts 1991, No. 189, § 1; 1993, No. 352, § 1; 1993, No. 373, § 1; 2019, No. 378, § 3.

Amendments. The 2019 amendment added the (d)(1)(A) and (d)(1)(B) designations; redesignated (d)(2) as (d)(2)(A) and (d)(2)(B); and made stylistic changes.

Case Notes

Nonresident Seller.

Where an agent of nonresident seller came into Arkansas and solicited the buyer to buy fertilizer from his or her company and the parties entered into a written contract in Arkansas, subject to the approval of the seller's home office, there was an actual proffer of sale within the state to a particular person in the state that constituted an “offer for sale within the state” of fertilizers within the meaning of former similar law. Empire Carbon Works v. J.C. Barker & Co., 132 Ark. 1, 199 S.W. 929 (1917) (decision under prior law).

2-19-203. Sale of unregistered fertilizer.

  1. It shall be unlawful for any manufacturer, individual, corporation, or company, either by themselves or agents, to sell or offer for sale in this state any fertilizer brand or fertilizer materials that have not been registered with and the registration approved by the State Plant Board or its authorized representative, as required by this subchapter.
  2. The fact that the purchaser waives the inspection and analysis thereof shall be no protection to the party selling or offering for sale fertilizer brands or fertilizer materials.
  3. It shall be unlawful for any manufacturers, jobbers, blenders, and manipulators of commercial fertilizers and of fertilizer materials, whether an individual, corporation, or company, either by themselves or by their agents, to sell or offer for sale in this state any fertilizer brand or fertilizer materials that were manufactured at an unlicensed fertilizer blending or bulk storage facility, as required by this subchapter.

History. Acts 1951, No. 106, § 5; A.S.A. 1947, § 77-708; Acts 1991, No. 189, § 2.

2-19-204. Exempted transactions.

Nothing in this subchapter shall be construed to restrict or prohibit sales of superphosphates or any other fertilizer materials to one another by importers, manufacturers, or manipulators who mix materials for sale, or prevent the free and unrestricted shipments of materials to manufacturers who have registered their brands, as required by this subchapter.

History. Acts 1951, No. 106, § 9; A.S.A. 1947, § 77-712.

2-19-205. Statement required on each container.

  1. Before selling or offering for sale in this state complete fertilizer or fertilizer materials, all persons, companies, manufacturers, dealers, or agents shall brand, print, or attach to each bag or other container:
    1. A true statement giving the name and address of the manufacturer or guarantor;
    2. The net weight of the package or other container, in pounds;
    3. The brand name or trademark;
    4. The guaranteed analysis: nitrogen %, phosphoric acid, available %, potash soluble in distilled water %; and
    5. Such other information as the State Plant Board may require in its rules.
  2. This information shall be given in the invoice rather than on the container for sales of anhydrous ammonia and other fertilizers in bulk.
  3. All the provisions of this subchapter which apply to statements or guarantees appearing on containers shall apply equally to information contained in the invoice.

History. Acts 1951, No. 106, § 2; 1953, No. 221, § 1; A.S.A. 1947, § 77-702.

Case Notes

Validity of Note.

In an action on a promissory note given for the purchase of a commercial fertilizer for an agreed price, it was a good defense that the sale of the fertilizer was made in this state and that the fertilizer had never been analyzed by the Commissioner of Mines, Manufactures, and Agriculture (now State Plant Board) nor tags affixed to the bags as required by the law. Florence Cotton Oil Co. v. Anglin, 105 Ark. 672, 152 S.W. 295 (1912) (decision under prior law).

2-19-206. Penalty for deficiency from guaranteed analysis.

    1. If any commercial fertilizer or fertilizer material offered for sale in this state shall, upon official analysis, prove deficient from its guarantee as stated on the bag or other container, to the extent of three percent (3%) and not over five percent (5%), then the manufacturer of the commercial fertilizer or fertilizer materials or his or her agent shall be liable for the actual deficiency as shown by the official analysis.
    2. If the deficiency is over five percent (5%), then the penalty will be three (3) times the amount of the total deficiency as found by the official analysis.
    3. The penalty shall apply only to the shipment sampled.
    4. In its rules, the State Plant Board may set up penalties for any guaranteed constituents found deficient beyond a reasonable tolerance.
    1. Penalties assessed under this section and under such rules as may be enacted under it, except those exceeding the actual value of the shortages found, shall be paid to the consumer of the lot of deficient fertilizer within thirty (30) days after the date of notice from the board to the manufacturer or agent, receipts to be taken and promptly forwarded to the board.
    2. The value of the deficiencies, if any, exceeding the actual shortages, and the actual value of the shortages when the consumer cannot be found, shall be paid to the board within forty-five (45) days after the date of notice from the board to the manufacturer or his or her agent and shall be deposited into the Feed and Fertilizer Fund of the State Treasury.
    1. The board shall ascertain the market value of the materials from the manufacturers of fertilizer and fertilizer materials specified in this subchapter to be used in the manufacture of fertilizer and fertilizer materials and from other reliable sources. This determination shall be done to fix units of value on them to be used in determining the amount of damages due when the official analysis shows a deficiency from the guaranteed analysis as specified in this subchapter.
    2. The board is authorized to cancel the present registration or refuse to register for the next season any fertilizer or fertilizer materials offered for sale by any manufacturer, jobber, or manipulator who fails or refuses to comply with this section.

History. Acts 1951, No. 106, § 3; 1957, No. 356, § 2; A.S.A. 1947, § 77-703.

Case Notes

Recovery by Seller.

In action on notes taken in payment for fertilizer, the seller was entitled to recover if the jury found that the fertilizer contained the ingredients named in the percent stated on the tags attached to the sacks or if there was no greater deficiency than three percent. Warren Cotton Oil & Mfg. Co. v. Gorman, 123 Ark. 279, 185 S.W. 433 (1916) (decision under prior law).

2-19-207. Sampling fertilizers.

The inspectors for the State Plant Board shall obtain samples of fertilizer or fertilizer materials in the following manner:

  1. They shall draw samples with a core instrument that shall not be less than twelve inches (12") in length in a manner that will procure a representative sample from such shipments of fertilizer or fertilizer materials as they may be directed by the board or that they may find uninspected;
  2. Where there are ten (10) packages or less, they shall take samples from every package; where there are ten (10) or more packages, they shall take samples from ten (10) packages, plus a sample for each additional ton. In no case do more than twenty (20) packages need to be sampled;
  3. After thoroughly mixing the samples so drawn, they shall fill a container to be approved by the board with a portion of the mixed sample for chemical analysis or inspection; and
  4. Accompanying these samples, a report shall be made giving the name of the commodity inspected, number of packages represented by sample, the name of the manufacturer, the guaranteed analysis, the place where inspected, the date of inspection, and the name of the inspector.

History. Acts 1951, No. 106, § 6; A.S.A. 1947, § 77-709.

2-19-208. Analysis of fertilizers.

    1. Samples of fertilizer or fertilizer materials obtained by the inspectors shall be delivered to the State Plant Board which shall deliver the samples to the chief department chemist who shall make or cause to be made a complete analysis thereof.
    2. Analyses are to be made according to methods adopted by the AOAC International.
    1. He or she shall file his or her analysis with the board, and it shall be recorded as official.
    2. The official analysis of fertilizer or fertilizer materials under the seal of the board shall be deemed prima facie evidence in any court of this state on the trial of any issue involved on the merits of the fertilizer or fertilizer materials represented by the sample.
    3. Three (3) copies of the official analysis shall be made:
      1. One (1) shall be sent:
        1. To the manufacturer;
        2. To the purchaser; and
      2. One (1) kept on file in the office of the board.

History. Acts 1951, No. 106, § 7; A.S.A. 1947, § 77-710.

Research References

Ark. L. Rev.

Documentary Evidence — Arkansas, 15 Ark. L. Rev. 79.

2-19-209. Monthly tonnage reports.

      1. All manufacturers and manipulators or agents representing them who have registered their brands in compliance with § 2-19-202 shall forward to the State Plant Board each month a report that shall reach its office on or before the twentieth day of the month, on the forms and in the number of copies to be prescribed by the State Plant Board.
      2. The report shall include a sworn statement of the total tonnage of all commercial fertilizers and fertilizer materials shipped or caused to be shipped for sale or consumption in this state, or which have been made, mixed, manufactured, or compounded in this state for sale or consumption in this state.
        1. The report shall be accompanied with the sum of two dollars and forty cents ($2.40) per ton or fractional ton.
        2. A fee of two dollars and forty cents ($2.40) will accompany each monthly report of tonnage which amounts to less than one (1) ton.
      1. The State Plant Board shall issue receipt for the amount received and shall deposit the sums received as follows:
        1. Sixty-two cents (62¢) of the two-dollar-and-forty-cent fee per ton or fractional ton inspected shall be deposited with the Treasurer of State as special revenues and shall be credited to the Plant Board Fund to be used for the maintenance, operation, support, and improvement of the board; and
          1. One dollar and seventy-eight cents ($1.78) of the two-dollar-and-forty-cent fee per ton or fractional ton inspected shall be remitted to the Board of Trustees of the University of Arkansas and shall be credited to a fund to be known as the “University of Arkansas, Division of Agriculture, Soil Testing and Research Fund” to be maintained in accounts in one (1) or more financial institutions in the State of Arkansas. This amount shall be expended exclusively for soil testing service and soil fertility research by the Board of Trustees of the University of Arkansas under appropriations made by the General Assembly. It shall be expended in support of one (1) or more soil testing laboratories and soil fertility research activities at the main experiment station, branch experiment stations, or subbranch experiment stations, as determined and designated by the Vice President for Agriculture of the University of Arkansas.
            1. The Board of Trustees of the University of Arkansas shall provide for the investment of any funds in the University of Arkansas, Division of Agriculture, Soil Testing and Research Fund that are not needed for current operations of the soil testing laboratories and soil fertility service and research activities and shall credit the interest earned on that investment to the credit of the University of Arkansas, Division of Agriculture, Soil Testing and Research Fund.
            2. The investment shall be of the type and nature authorized for the investment of average daily State Treasury balances by the State Board of Finance.
    1. The State Plant Board or its agents shall have the right, at any time, to inspect or audit the books of any manufacturer and manipulator or their agents to determine the correctness of the monthly reports required under this section.
    2. Refusal to allow this inspection or audit shall be deemed a violation of this subchapter, and the violator shall be subject to the penalties provided in this subchapter.
    3. For a late report or for failure to report the entire amount sold, the tonnage fee on the late reported or unreported amount shall be enhanced by ten percent (10%) if less than fifteen (15) days late, twenty percent (20%) if less than thirty-one (31) days late, and doubled if more than thirty (30) days late. Penalties shall be deposited into the Plant Board Fund; otherwise, registrations may be cancelled by the State Plant Board.

History. Acts 1951, No. 106, § 4; 1953, No. 301, § 1; 1957, No. 356, § 3; 1981, No. 398, § 2; A.S.A. 1947, § 77-707; Acts 1993, No. 783, § 1; 1999, No. 766, § 1; 2009, No. 326, § 1.

Amendments. The 2009 amendment, in (a), substituted “two dollars and forty cents ($2.40)” for “one dollar and twenty cents ($1.20)” in (a)(2)(A)(i) and (ii), substituted “Sixty-two cents (62¢) of the two dollars and forty cent ($2.40)” for “Thirty-one cents (32¢) of the one dollar and twenty cent ($1.20)” in (a)(2)(B)(i), substituted “One dollar and seventy-eight cents ($1.78) of the two dollar and forty cent ($2.40)” for “Eighty-nine cents (89¢) of the one dollar and twenty cent ($1.20)” in (a)(2)(A)(ii) (a) , inserted “Division of Agriculture” in (a)(2)(A)(ii) (a) and twice in (a)(2)(A)(ii) (b)(1) , and made related changes.

2-19-210. Rules.

  1. The State Plant Board shall have authority to establish rules in regard to the enforcement of this subchapter and in regard to inspection, analysis, and sale of fertilizer or fertilizer materials that shall not be inconsistent with the provisions of this subchapter.
  2. The board or its authorized representatives shall have authority to stop the sale of any fertilizer or fertilizer material when the sale is found in violation of this subchapter, or of the rules of the board made in accordance with this subchapter, or when it has reason to suspect that the sale is in violation of this subchapter or of the board's rules.

History. Acts 1951, No. 106, § 8; A.S.A. 1947, § 77-711.

2-19-211. Use of penalties from fertilizer tonnage fees.

All penalties received by the State Plant Board for failure to pay or report fertilizer tonnage fees shall be remitted to the Board of Trustees of the University of Arkansas, to be credited to the University of Arkansas, Division of Agriculture, Soil Testing and Research Fund in the same manner as prescribed by § 2-19-209 and to be used for the same purposes as described in § 2-19-209.

History. Acts 1999, No. 989, § 1; 2009, No. 326, § 2.

A.C.R.C. Notes. References to “this subchapter” in §§ 2-19-2012-19-210 may not apply to this section, which was enacted subsequently.

Amendments. The 2009 amendment inserted “Division of Agriculture” and made a related change.

2-19-212. Local legislation preemption — Definitions.

  1. As used in this section:
    1. “Local legislation” means any ordinance, motion, resolution, amendment, regulation, or rule adopted by a political subdivision of this state; and
    2. “Political subdivision” means any local governmental entity including without limitation, any city, county, township, or municipal corporation and any other body corporate and politic that is responsible for government activities in a geographical area smaller than that of the state.
  2. No political subdivision shall:
    1. Regulate the registration, packaging, labeling, sale, storage, distribution, use, or application of fertilizers; or
    2. Adopt or continue in effect local legislation relating to the registration, packaging, labeling, sale, storage, distribution, use, or application of fertilizers.
  3. Local legislation in violation of this section is void and unenforceable.

History. Acts 2007, No. 678, § 1.

Subchapter 3 — Liming Materials

Effective Dates. Acts 1969, No. 353, § 11: July 1, 1969.

Acts 1983, No. 724, § 4: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the soils testing research and extension programs and services of the University of Arkansas have made substantial contributions to the agricultural and livestock industries in this state through information derived through research and extension that has led to improved uses of lime and improved formulation and application of lime in crop and plant production; that the existing soil testing services and funds available for soil testing research and extension are not adequate to meet the agricultural and livestock needs of this state, and that the immediate passage of this act is necessary to enable the State Plant Board to collect sufficient fees from the inspection of lime to provide the funds for the efficient and necessary operation of the plant board and soil testing research and extension services of the University of Arkansas, to provide the funds essential for the operation of existing programs and continued progress in the use of lime in crop and plant production in this state, and that the immediate passage of this act is necessary to enable the plant board to collect said fees for the purposes set forth in this act. Therefore, an emergency is hereby declared to exist and this act, being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1993, No. 783, § 13: Mar. 29, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly meeting in Regular Session that the provisions of this act are of critical importance to the state's ability to continue the duties, responsibilities, and functions of the State Plant Board. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

2-19-301. Title.

This subchapter shall be known as the “Arkansas Agricultural Liming Materials Act”.

History. Acts 1969, No. 353, § 1; A.S.A. 1947, § 77-1901.

2-19-302. Penalty.

Any person who shall violate any provision of this subchapter or any rule adopted under this subchapter shall upon conviction be guilty of a violation and fined not less than one hundred dollars ($100) for the first offense and not less than three hundred dollars ($300) for every subsequent offense.

History. Acts 1969, No. 353, § 8; A.S.A. 1947, § 77-1908; Acts 2005, No. 1994, § 12; 2019, No. 315, § 15.

Amendments. The 2005 amendment inserted “guilty of a violation and”.

The 2019 amendment substituted “rule” for “regulation”.

2-19-303. Labeling requirements — Definition.

  1. As used in this subchapter, unless the context otherwise requires, “liming material” means all or any form of limestone, lime rock, dolomite, marl, slag, by-product lime, brown lime, industry or factory refuse lime, and any other material moved, prepared, sold, or distributed primarily for correcting soil acidity.
  2. Every lot, package, or parcel of liming material sold or offered or exposed for sale or distribution within this state shall have on each bag, package, or other container in a conspicuous place on the outside; or in the case of bulk lime, there shall accompany each load and the vendor shall present to the purchaser a legible and true statement in the English language giving:
    1. The net weight of the contents of the package, bag, other container, or bulk load;
    2. The true name of the product;
    3. The name and principal address of the manufacturer, importer, or other guarantor;
    4. The minimum neutralizing value in terms of percent of calcium carbonate equivalent;
    5. The degree of fineness expressed as:
      1. Minimum percentage passing through a ten (10) mesh sieve;
      2. Minimum percentage passing through a sixty (60) mesh sieve; and
      3. Minimum percentage passing through a one hundred (100) mesh sieve; and
    6. Any other statements that the State Plant Board in its rules may require.
  3. In lieu of subdivisions (b)(4) and (5) of this section, the board may in its rules set minimum standards of calcium carbonate equivalence and fineness for various grades of liming materials. These grades when stated shall become the minimum guarantees of the liming material so labeled.

History. Acts 1969, No. 353, § 2; A.S.A. 1947, § 77-1902.

2-19-304. Sampling and analysis.

  1. The State Plant Board through its authorized agents is authorized to select from any package, bulk load, or lot of liming material exposed for sale or distribution in this state a quantity not less than two pounds (2 lbs.) for a sample, to be used for the purpose of an official analysis for comparison with the statement required by § 2-19-303 or the rules provided for therein.
  2. The board and its authorized agents shall have free access during reasonable business hours to all premises where liming materials are manufactured, sold, or stored, and vehicles wherein distributed, and are authorized at all times to stop-sale by written order any and all liming materials that are unregistered, misbranded, fail to meet the guarantee, or otherwise fail to comply with the provisions of this subchapter.

History. Acts 1969, No. 353, § 5; A.S.A. 1947, § 77-1905.

2-19-305. Penalty for deficiency from guaranteed analysis.

  1. If any liming material offered for sale in this state shall, upon official analysis, prove deficient from its statement of guarantee to the extent of five percent (5%) or more, then the manufacturer, importer, or guarantor of the liming material shall be liable for two (2) times the value of the actual deficiency as shown by the official analysis.
    1. Penalties assessed under this section, except those exceeding the actual value of the shortages found, shall be paid to the consumer of the lot of deficient liming material within thirty (30) days after the date of notice from the State Plant Board to the manufacturer, importer, or guarantor, receipts to be taken and promptly forwarded to the board.
    2. The value of the deficiencies exceeding the actual shortages and the actual value of the shortages when the consumer cannot be found shall be paid to the board within forty-five (45) days after the date of notice from the board to the manufacturer, importer, or guarantor and shall be deposited into the Plant Board Fund of the State Treasury.
  2. The board is authorized to cancel the present registration or to refuse to register for the next season any liming materials offered for sale or distribution by any manufacturer, importer, or guarantor who fails or refuses to comply with this section.

History. Acts 1969, No. 353, § 6; A.S.A. 1947, § 77-1906.

2-19-306. Registration and vendor's license.

  1. Registration.
    1. Before any liming material is sold or offered for sale or distribution in this state, the manufacturer, importer, or other guarantor, which is a person or firm who places or mixes liming materials of more than one (1) manufacturer in a stockpile, shall register each such liming material with the State Plant Board.
    2. The registration shall contain the statement referred to in § 2-19-303 or the rules provided for therein and be accompanied by a fee of fifteen dollars ($15.00) for each liming material.
    3. Registrations shall expire June 30 of each year.
  2. Vendor's License.
    1. It shall be unlawful for any person or firm to engage in the spreading of liming material on properties belonging to others unless application for a license shall be in the form prescribed by the board. The form shall state the name and address of the applicant and total number of spreader trucks or other similar vehicles to be used by the applicant.
    2. The application shall be accompanied by a fee of fifteen dollars ($15.00) for the license plus a fee of three dollars ($3.00) for each spreader truck or similar vehicle.
    3. Licenses shall expire June 30 of each year.

History. Acts 1969, No. 353, § 3; 1983, No. 724, § 1; A.S.A. 1947, § 77-1903.

2-19-307. Quarterly tonnage reports.

        1. All manufacturers, importers, and other guarantors who are registered under § 2-19-306(a) shall forward to the State Plant Board each quarter a report on forms prescribed by the State Plant Board, not later than thirty (30) days after the end of each quarter.
        2. Quarters shall end September 30, December 31, March 31, and June 30 of each year.
      1. The report shall include a sworn statement of the total tonnage of all liming materials distributed in this state and shall be accompanied by the sum of thirty cents (30¢) per ton or fractional ton.
    1. A fee of thirty cents (30¢) will accompany each quarterly report of tonnage which amounts to less than one (1) ton.
      1. When sales or distributions of liming materials are between registrants, the registrant who sells or distributes to a person or firm who is not a registrant shall be responsible for payment of the inspection fee unless the payment is made by the registrant initiating the transaction.
      2. Invoices of transactions between registrants shall be marked “inspection fee paid” or “inspection fee not paid”; otherwise, the registrant initiating the transaction shall be responsible for the inspection fee.
      3. The State Plant Board shall issue receipts for the amounts received and shall deposit the sums received as follows:
        1. Twenty cents (20¢) of the thirty-cent fee per ton or fractional ton inspected shall be deposited with the Treasurer of State as special revenues. It shall be credited to the State Plant Board to be used for its maintenance, operation, support, and improvement; and
          1. Ten cents (10¢) of the thirty-cent fee per ton or fractional ton inspected shall be remitted to the Board of Trustees of the University of Arkansas. This amount shall be credited to a fund to be known as the “University of Arkansas, Division of Agriculture, Soil Testing and Research Fund” to be maintained in accounts in one (1) or more financial institutions in the State of Arkansas. This amount shall be expended exclusively for soil testing service and soil fertility research and extension by the Board of Trustees of the University of Arkansas under appropriations made by the General Assembly. It shall be expended in support of one (1) or more soil testing laboratories and soil fertility research activities at the main experiment stations, branch experiment stations, or subbranch experiment stations, as determined and designated by the Vice President for Agriculture of the University of Arkansas.
            1. The Board of Trustees of the University of Arkansas shall provide for the investment of any funds in the University of Arkansas, Division of Agriculture, Soil Testing and Research Fund that are not needed for current operations of the soil testing laboratories and soil fertility service and research and extension activities and shall credit the interest earned on the investment to the credit of the University of Arkansas, Division of Agriculture, Soil Testing and Research Fund.
            2. The investment shall be of the type and nature authorized for the investment of average daily State Treasury balances by the State Board of Finance.
    1. The State Plant Board or its agents shall have the right at any time to inspect or audit the books of any manufacturer and manipulator or their agents to determine the correctness of the monthly reports required under this section.
    2. Refusal to allow this inspection or audit shall be deemed a violation of this subchapter, and the violator shall be subject to the penalties provided in it.
    3. For a late report or for failure to report the entire amount sold, the tonnage fee on the late report or unreported amount shall be doubled, and penalties shall be deposited into the Plant Board Fund; otherwise, registrations may be cancelled by the State Plant Board.

History. Acts 1969, No. 353, § 4; 1983, No. 724, § 2; A.S.A. 1947, § 77-1904; Acts 1993, No. 783, § 2; 2009, No. 326, § 3.

Amendments. The 2009 amendment inserted “Division of Agriculture” in (a)(3)(C)(ii) (a) and twice in (b)(1), and made related changes.

2-19-308. Rules.

The State Plant Board is empowered to enforce the provisions of this subchapter and to prescribe and enforce such rules relating to the sale or distribution of liming materials as may be deemed necessary to carry into effect the full intent and meaning of this subchapter.

History. Acts 1969, No. 353, § 7; A.S.A. 1947, § 77-1907.

Subchapter 4 — Soil Amendment

Effective Dates. Acts 1977, No. 377, § 15: Mar. 8, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly of Arkansas that the introduction of certain substances into the soil of this state endangers the soil of Arkansas, and poses a severe threat to the health, safety and welfare of the people of Arkansas. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in force from the date of its approval.”

2-19-401. Title.

This subchapter shall be known as the “Soil Amendment Act of 1977”.

History. Acts 1977, No. 377, § 1; A.S.A. 1947, § 77-2101.

2-19-402. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Active ingredient” means the ingredient or ingredients which are claimed to have beneficial effects on soil or crops growing on soils;
  2. “Adulterated” means and shall apply to any soil amendment if:
    1. It contains any deleterious or harmful agent in sufficient amount to render it injurious to beneficial plants, animals, or aquatic life when applied in accordance with the directions for use shown on the label; or if adequate warning statements and directions for use which may be necessary to protect plants, animals, or aquatic life are not shown on the label;
    2. Its composition falls below that which it is purported to possess by its labeling; or
    3. It contains noxious weed seed, harmful insects, or harmful disease organisms;
  3. “Board” means the State Plant Board;
  4. “Bulk” means in nonpackaged form;
  5. “Distribute” means to import, consign, offer for sale, sell, barter, or to otherwise supply soil amendments to any person in this state;
  6. “Distributor” means any person who imports, consigns, sells, offers for sale, barters, or otherwise supplies soil amendments in this state;
  7. “Inert ingredient” means the ingredients which do not have any beneficial or harmful effects on soil or crops but are present in the product;
  8. “Label” means the display of written, printed, or graphic matter upon the immediate container of a soil amendment;
  9. “Labeling” means all written, printed, or graphic matter upon or accompanying any soil amendment and all advertisements, brochures, posters, or television or radio announcements used in promoting the sale of a soil amendment;
  10. “Manufacturer” means any person who produces, compounds, mixes, or blends soil amendments;
  11. “Misbranded” means and shall apply if:
    1. Any soil amendment bears a label that is false or misleading in any particular;
    2. Any soil amendment is distributed under the name of another soil amendment;
    3. Any material is represented as a soil amendment or is represented as containing a soil amendment, unless the soil amendment conforms to the definition of identity, if any, prescribed by rule;
    4. The percentage of active ingredient in any soil amendment is not shown in the approved ingredient form; or
    5. The labeling on any soil amendment is false or misleading in any particular;
  12. “Name” means the specific designation under which the individual product is offered for sale;
  13. “Percent” or “percentage” means by weight;
  14. “Person” means individuals, partnerships, associations, and corporations;
  15. “Registrant” means any person who registers a soil amendment under the provisions of this subchapter; and
  16. “Soil amendment” means and includes any substance which is intended to improve the physical, chemical, or other characteristics of the soil or improve crop production, except the following:
    1. Commercial fertilizers, unless represented to contain as an active ingredient a substance other than a recognized plant food element or represented as promoting plant growth by other than supplying a recognized plant food element;
    2. Agricultural liming materials;
    3. Agricultural gypsum;
    4. Unmanipulated animal manures;
    5. Topsoil;
    6. Unmanipulated vegetable manures;
    7. Pesticides; and
    8. Herbicides.

History. Acts 1977, No. 377, § 3; A.S.A. 1947, § 77-2103; Acts 2019, No. 315, § 16.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (11)(C).

2-19-403. Penalty.

Any person convicted of violation of any provision of this subchapter or the rules promulgated under this subchapter shall be guilty of a misdemeanor.

History. Acts 1977, No. 377, § 12; A.S.A. 1947, § 77-2112.

2-19-404. Administration.

This subchapter shall be administered by the State Plant Board.

History. Acts 1977, No. 377, § 2; A.S.A. 1947, § 77-2102.

2-19-405. Inspection authorized.

  1. The authorized agents of the State Plant Board may inspect, sample, analyze, and test soil amendments distributed in this state at any time and place and to such extent as may be deemed necessary to determine whether soil amendments are in compliance with this subchapter.
  2. The board and its employees or agents are authorized to enter upon public or private property during regular working hours in order to have access to soil amendments for the purpose of administering this subchapter.

History. Acts 1977, No. 377, § 9; A.S.A. 1947, § 77-2109.

2-19-406. Rules.

The State Plant Board is authorized to adopt such rules as may be necessary to administer this subchapter, including methods of sampling, methods of analysis, and designation of ingredient forms, and to promulgate definitions of identity of products.

History. Acts 1977, No. 377, § 10; A.S.A. 1947, § 77-2110.

2-19-407. Labeling requirements and approval of ingredients.

  1. Each container of a soil amendment shall be labeled on the face or display side in a readable and conspicuous form to show the following information:
    1. The net weight of the contents;
    2. The name of the product;
    3. The guaranteed analysis, including the name and the percentage of each active ingredient and the percentage of inert ingredients;
    4. A statement as to the purpose of the product;
    5. Adequate directions for use such as application rates, cultural practices, and plants to be benefited; and
    6. The name and address of the registrant.
  2. Bulk lots shall be labeled by attaching a copy of the label to the invoice which shall be furnished the purchaser.
      1. The State Plant Board may require proof of claims made for any soil amendment.
      2. If no claims are made, the board may require proof of usefulness and value of the soil amendment.
      1. For evidence of proof, the board will rely on experimental data, evaluations, or advice supplied from such sources as the University of Arkansas Agricultural Experiment Station and the University of Arkansas Cooperative Extension Service.
      2. All experimental results shall be related to Arkansas conditions for which the product is intended.
      3. The board may accept or reject other sources of proof as additional evidence in evaluating soil amendments.
      1. No soil-amending ingredient may be listed or guaranteed on the labels or labeling of soil amendments without board approval.
        1. The board may allow a soil-amending ingredient to be listed or guaranteed on the label or labeling if satisfactory supportive data is provided the board to substantiate the value and usefulness of the soil-amending ingredient.
        2. When a soil-amending ingredient is permitted to be listed or guaranteed, it must be determinable by laboratory methods and is subject to inspection and analysis.
    1. The board may prescribe methods and procedures of inspection and analysis of the soil-amending ingredient.
    2. The board may stipulate, by rule, the quantities of the soil-amending ingredients required in soil amendments.

History. Acts 1977, No. 377, § 4; A.S.A. 1947, § 77-2104; Acts 2019, No. 315, § 17.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (d)(3).

2-19-408. Registration of products.

    1. Each soil amendment product shall be registered with the board before it is distributed in this state.
    2. Application for registration shall be submitted to the State Plant Board on a form prepared for that purpose showing the information required on the label, as provided in § 2-19-407, except net weight of product.
  1. The registration fee shall be set by the board for each product.
  2. All registrations shall expire on June 30 of the year for which the soil amendment product is registered.
  3. With the application for registration, the applicant shall submit a copy of the label and a copy of all advertisements, brochures, posters, and television and radio announcements to be used in promoting the sale of the soil amendment.

History. Acts 1977, No. 377, § 5; A.S.A. 1947, § 77-2105.

2-19-409. Denial or revocation of registration.

  1. The State Plant Board shall refuse to register any product that does not comply with this subchapter and the rules promulgated under it.
    1. The board is also authorized and empowered to revoke any registration upon satisfactory evidence that the registrant or any of his or her agents has used fraudulent or deceptive practices.
    2. Registration shall not be revoked until the registrant has been given an opportunity for hearing before the board or its duly authorized agent.

History. Acts 1977, No. 377, § 11; A.S.A. 1947, § 77-2111.

2-19-410. Inspection fee and sales reports.

    1. The registrant shall pay to the State Plant Board an inspection fee of thirty-seven and one-half cents (37.5¢) per ton on all products registered and sold in this state.
    2. Each registrant shall keep adequate records of sales and shall file with the board, on a monthly basis, a signed report of the tonnage distributed by county during the preceding month.
    3. The report and payment of the inspection fee shall be due on or before the twentieth day of the month.
    4. The board, after a public hearing, may change the inspection fee schedule.
    1. If the report is not filed, or the report is false in any respect or the inspection fee is not paid within the thirty-day period, the board may revoke the registration.
    2. A penalty of one dollar ($1.00) per day is assessed for each day the payment is overdue until paid.
    3. The inspection fee and the penalty shall constitute a debt and become the basis for a judgment against the registrant which may be collected by the board in any court of competent jurisdiction without prior demand.

History. Acts 1977, No. 377, § 6; A.S.A. 1947, § 77-2106.

2-19-411. Prohibited acts.

It shall be a violation of this subchapter for any person to:

  1. Distribute a soil amendment that is not registered with the State Plant Board;
  2. Distribute a soil amendment that is not labeled;
  3. Distribute a soil amendment that is misbranded;
  4. Distribute a soil amendment that is adulterated;
  5. Fail to comply with a stop-sale, use, or removal order; or
  6. Fail to pay the inspection fee.

History. Acts 1977, No. 377, § 8; A.S.A. 1947, § 77-2108.

2-19-412. Stop-sale, use, or removal orders.

  1. The State Plant Board may issue and enforce a written or printed stop-sale, use, or removal order to the owner or custodian of any lot of soil amendment to hold the lot at a designated place when the board finds the soil amendment being offered or exposed for sale is not registered, is not labeled, is misbranded, or is adulterated, until such time as the product or labeling complies with this subchapter.
  2. The soil amendment may then be released in writing by the board.

History. Acts 1977, No. 377, § 7; A.S.A. 1947, § 77-2107.

2-19-413. Injunctions.

  1. The State Plant Board is authorized to apply for, and the court is authorized to grant, a temporary or permanent injunction restraining any person from violating or continuing to violate any of the provisions of this subchapter or any rule promulgated under it, notwithstanding the existence of other remedies at law.
  2. The injunction shall be issued without bond.

History. Acts 1977, No. 377, § 12; A.S.A. 1947, § 77-2112; Acts 2019, No. 315, § 18.

Amendments. The 2019 amendment deleted “or regulation” following “rule” in (a).

2-19-414. Deposit of moneys.

  1. The State Plant Board shall remit all moneys received by or for it under this subchapter to the Treasurer of State.
  2. Upon receipt of any remittance, the Treasurer of State shall deposit the entire amount into the State Treasury and handle the funds in the same manner as required in § 2-19-209.

History. Acts 1977, No. 377, § 13; A.S.A. 1947, § 77-2113.

Subchapter 5 — Natural Organic Fertilizers

Effective Dates. Acts 1988 (4th Ex. Sess.), No. 24, § 3: July 25, 1988. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the use of 100 percent natural organic fertilizer will make substantial contributions to the agricultural industry in the State, and enable the State Plant Board to collect additional fees to provide for the efficient and necessary operation of the State Plant Board. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

2-19-501. Definition.

“One hundred percent (100%) natural organic fertilizer” shall be defined as and include the following:

    1. One hundred percent (100%) organic fertilizer — Materials derived from either plant or animal products containing one (1) or more elements other than carbon, hydrogen, and oxygen which are essential for plant growth.
    2. These materials may be subjected to biological degradation processes under conditions of drying, composting, enzymatic or anaerobic/aerobic bacterial action or any combination of these.
    3. These materials shall not be mixed with synthetic materials;
  1. One hundred percent (100%) natural organic fertilizer shall be processed from only one hundred percent (100%) animal substrate. No other organic or inorganic, natural or synthetic, additives shall be used during processing and no fortification may be used;
  2. One hundred percent (100%) natural organic fertilizers shall contain as a guaranteed analysis not less than: nitrogen (N), four percent (4.0%); phosphoric acid (P2O5), two percent (2.0%); and potash (K2O), four percent (4.0%); and
  3. Determination of the guaranteed analysis will be according to methods adopted by the AOAC International. (Fertilizers and Materials Containing Large Quantities of Organic Matter; 12th edition, With Following Improvements.).

History. Acts 1988 (4th Ex. Sess.), No. 24, § 1; 1991, No. 968, § 1; 2019, No. 378, § 4.

Amendments. The 2019 amendment redesignated the introductory language of (1) as (1)(A), and redesignated former (1)(A) and (1)(B) as (1)(B) and (1)(C).

2-19-502. Regulation and supervision — Fees and penalties — Guarantee of elements.

  1. The State Plant Board shall have the authority to regulate and supervise the manufacture and sale of one hundred percent (100%) natural organic fertilizer, including the setting and collecting of reasonable fees for sampling and analyzing the fertilizer and registering manufacturers, and shall adopt and promulgate such rules and penalties consistent with this subchapter, and § 2-19-202, as may be necessary.
  2. The fees and penalties set and collected by the board under this section shall not exceed like fees and penalties set for other types of fertilizers.
  3. When any reference or claim is made on the label for secondary or minor plant nutrients, a specific guarantee of the specific elements contained shall be given in the guaranteed analysis.

History. Acts 1988 (4th Ex. Sess.), No. 24, § 1; 1989, No. 42, § 1; 1991, No. 968, § 2.

2-19-503. Exemptions.

This subchapter shall not affect the private sale of unprocessed animal litter, nor shall the State Plant Board regulate the private sale of unprocessed animal litter which is not sold as one hundred percent (100%) natural organic fertilizer as defined by this subchapter.

History. Acts 1988 (4th Ex. Sess.), No. 24, § 1; 1991, No. 968, § 3.

Chapter 20 Processing, Grading, Labeling, and Marketing of Products

A.C.R.C. Notes. References to “this chapter” in subchapters 1-7 may not apply to subchapter 8 which was enacted subsequently.

Subchapter 1 — General Provisions

Publisher's Notes. With respect to certain fruits and vegetables intended for shipment outside the state, this subchapter may be superseded by § 2-20-301 et seq. governing labeling of fruits and vegetables for interstate shipment.

Cross References. Landlords or laborers lien superior to purchase of ginner's receipt, § 18-41-107.

Effective Dates. Acts 1925, No. 218, § 20: July 1, 1925.

Research References

Am. Jur. 3 Am. Jur. 2d, Agri., § 48 et seq.

C.J.S. 3 C.J.S., Agri., § 200 et seq.

2-20-101. Title.

This subchapter shall be known as the “Agricultural Products Grading Act of 1925”.

History. Acts 1925, No. 218, § 1; Pope's Dig., § 12384; A.S.A. 1947, § 77-501.

2-20-102. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Agricultural products” means horticultural, viticultural, bee, and other agricultural products;
  2. “Board” means the State Plant Board;
  3. “Director” means the Director of the State Plant Board;
  4. “Persons” means individuals, partnerships, corporations, associations, or two (2) or more individuals having a joint or common interest; and
  5. “Places” means vessels, cars, and other vehicles, buildings, docks, railroad platforms, orchards, fields, and other premises where agricultural products are kept, handled, or grown.

History. Acts 1925, No. 218, § 2; Pope's Dig., § 12385; A.S.A. 1947, § 77-502.

2-20-103. Penalty.

Any person who shall violate any provision of this subchapter shall be guilty of a Class B misdemeanor.

History. Acts 1925, No. 218, § 16; Pope's Dig., § 12398; A.S.A. 1947, § 77-515; Acts 2005, No. 1994, § 233.

Amendments. The 2005 amendment inserted “Class B” and deleted “and upon conviction shall be punished by a fine of not more than five hundred ($500) or by imprisonment for not more than ninety (90) days, or by both fine and imprisonment” from the end.

2-20-104. Official standards for grading.

  1. In order to promote, protect, further, and develop the agricultural interests of this state, the State Plant Board, after investigation and public hearing, is authorized and empowered to fix and promulgate official standards for grading and classifying any or all agricultural products grown or produced in this state and to fix and promulgate official standards for containers of farm products and to change any of them from time to time.
  2. The board, in its rules or notices promulgated under this subchapter, shall prescribe such tolerances as may be deemed necessary, permitting variations from the standards fixed under the provisions of this subchapter as are reasonably incident to the proper grading of agricultural products or to the manufacture of containers for farm products.

History. Acts 1925, No. 218, § 3; Pope's Dig., § 12386; A.S.A. 1947, § 77-503.

Case Notes

Cited: Stuttgart Rice Mill Co. v. Crandall, 203 Ark. 281, 157 S.W.2d 205 (1941).

2-20-105. Notice of standards.

  1. In promulgating the standards or any alterations or modifications of the standards, the State Plant Board shall specify the date when they shall become effective and shall give public notice, not less than thirty (30) days in advance of the date when the standard for any agricultural product shall become effective and one (1) year in advance of the date when the standard for any container shall become effective, by such means as the board deems proper.
  2. The Director of the State Plant Board is authorized and empowered to employ reasonable methods for diffusing information concerning the standard that may be fixed by the board for any agricultural product or container.

History. Acts 1925, No. 218, § 4; Pope's Dig., § 12387; A.S.A. 1947, § 77-504.

2-20-106. Adoption of federal standards.

  1. The State Plant Board is authorized to fix and promulgate as the official standard of this state for any agricultural product or container the standard for the product or container which may have been promulgated or announced therefor under the authority of the United States Congress.
  2. In carrying out the provisions of this subchapter, the Director of the State Plant Board is authorized to cooperate with the United States or any department thereof in accomplishing the matters and things provided for in this subchapter.

History. Acts 1925, No. 218, § 5; Pope's Dig., § 12388; A.S.A. 1947, § 77-505.

2-20-107. Container standards.

When any standard for a container for an agricultural product becomes effective under this subchapter, then no person shall manufacture for commerce within the jurisdiction of this state or sell, ship, or offer for sale in commerce any container, either filled or unfilled, to which that standard is applicable when the container does not comply with the standard, subject to such tolerance as may be permitted under this subchapter.

History. Acts 1925, No. 218, § 14; Pope's Dig., § 12396; A.S.A. 1947, § 77-513.

2-20-108. Unlawful sale or disposal.

It shall be unlawful for any person to offer for sale or to sell or otherwise dispose of any agricultural product in this state under any grade name or classification fixed for that agricultural product under the provisions of this subchapter or under any description, name, or designation which would reasonably be construed to refer to any grade name or classification fixed for that agricultural product under the provisions of this subchapter unless that agricultural product is graded or classified in conformity with the standard which may be specified for that grade or classification of the agricultural product under the provisions of this subchapter.

History. Acts 1925, No. 218, § 15; Pope's Dig., § 12397; A.S.A. 1947, § 77-514.

2-20-109. Suspension or revocation of licenses.

  1. The Director of the State Plant Board may designate any competent inspector or other employee or agent of the State Plant Board and, upon satisfactory evidence of competency, may license any other person, and charge and collect a reasonable fee for the license, to inspect or classify agricultural products in accordance with such rules as the board may prescribe at such places as the volume of business may be found to warrant the furnishing of inspection service, at the request of persons having an interest in products and to ascertain and certify the grade, classification, quality, or condition thereof, and such other pertinent facts as the board may require.
    1. The board is authorized to fix, assess, and collect or cause to be collected fees for services when they are performed by inspectors, employees, or agents of the board.
    2. Licensed inspectors may charge and collect as compensation for services only such fees as may be approved by the board.
    1. The director may suspend or revoke any license whenever, after an opportunity for hearing has been afforded to the licensee, the director shall determine that the licensee is incompetent, or has knowingly or carelessly failed to grade or classify any agricultural product in accordance with such standards, or has knowingly or carelessly failed to correctly certify the grade, classification, quality, or condition of any agricultural product, or has violated any provision of this subchapter, or of the rules made pursuant thereto.
    2. Pending investigations, the director may suspend a licensee temporarily without a hearing.

History. Acts 1925, No. 218, § 6; Pope's Dig., § 12389; A.S.A. 1947, § 77-506.

Cross References. Licenses and permits, removal of disqualification for criminal offenses, § 17-1-103.

2-20-110. Inspectors, employees, and agents.

  1. The Director of the State Plant Board may appoint deputy inspectors, employees, and agents to assist in carrying out the provisions of this subchapter.
    1. The director may require any employee or agent and any inspector licensed under this subchapter to be covered by a good and sufficient bond, payable to the state, conditional upon the faithful performance of each employee, agent, or licensed inspector of his or her duties as an employee, agent, or licensed inspector.
    2. Any person injured by the failure of an employee, agent, or licensed inspector faithfully to perform such duties shall be entitled to sue on the bond in his or her own name in any court of competent jurisdiction for the recovery of such damages as he or she may have sustained by reason of that failure.

History. Acts 1925, No. 218, § 10; Pope's Dig., § 12393; Acts 1985, No. 279, § 2; A.S.A. 1947, § 77-510.

2-20-111. Unlawful actions — Improper influence.

  1. It shall be unlawful for any inspector, employee, or agent employed under the provisions of this subchapter, or any inspector licensed under it, to:
    1. Knowingly inspect, grade, or classify improperly any agricultural product;
    2. Knowingly give any incorrect certificate of grade, classification, quality, or condition; or
    3. Accept money or other consideration, directly or indirectly, for any incorrect or improper performance of duty.
  2. It shall be unlawful for any person to improperly influence or attempt to improperly influence any inspector, employee, agent, or licensed inspector in the performance of his or her duties.

History. Acts 1925, No. 218, § 11; Pope's Dig., § 12394; A.S.A. 1947, § 77-511.

2-20-112. Administration.

  1. The State Plant Board is authorized and empowered to promulgate rules and notices for carrying out the purposes and provisions of this subchapter.
  2. All fees and moneys collected or received by inspectors, employees, or agents of the board under this subchapter and the rules which may be promulgated under it shall be deposited in a manner prescribed in § 2-16-210 and shall be used for carrying out the provisions of this subchapter.

History. Acts 1925, No. 218, § 9; Pope's Dig., § 12392; A.S.A. 1947, § 77-509.

Cross References. Deposit of fees into state treasury, § 2-16-104.

2-20-113. Right of inspection.

For the purpose of carrying out the provisions and requirements of this subchapter and the rules and notices made and promulgated under it, the State Plant Board and its inspectors shall have power to enter into or upon any place and to open any bundle, package, or container of agricultural products.

History. Acts 1925, No. 218, § 18; Pope's Dig., § 12400; A.S.A. 1947, § 77-517.

2-20-114. Appeal of certification.

    1. Whenever any quantity of any agricultural product shall have been inspected under this subchapter and a question arises as to whether the certificate issued therefor shows the true grade, classification, quality, or condition of the product, any interested person, subject to the rules as the State Plant Board may prescribe, may appeal the question to the Director of the State Plant Board.
    2. The director is authorized to cause an investigation to be made and such tests to be applied as he or she may deem necessary and to determine and issue a finding of the true grade or classification of the product or of the quality or condition thereof.
  1. Whenever an appeal shall be taken to the director under this section, he or she shall charge and assess and collect or cause to be collected a reasonable fee, to be fixed by him or her, which shall be refunded if the appeal is sustained.

History. Acts 1925, No. 218, § 7; Pope's Dig., § 12390; A.S.A. 1947, § 77-507.

2-20-115. Certificate as evidence.

When not superseded by a finding on appeal of the grade, classification, quality, or condition of any agricultural product, a certificate issued under this subchapter and all certificates issued under authority of the United States Congress relating to grade, classification, quality, or condition of agricultural products shall be accepted in any court of this state as prima facie evidence of true grade, classification, condition, or quality of the agricultural product at the time of its inspection.

History. Acts 1925, No. 218, § 8; Pope's Dig., § 12391; A.S.A. 1947, § 77-508.

Research References

Ark. L. Rev.

Documentary Evidence — Arkansas, 15 Ark. L. Rev. 79.

2-20-116. Misrepresentations.

If any quantity of any agricultural product shall have been inspected and a certificate issued under this subchapter showing the grade, classification, quality, or condition thereof, no person shall represent the grade, classification, quality, or condition of the product at the time and place of the inspection as other than shown by the certificate.

History. Acts 1925, No. 218, § 12; Pope's Dig., § 12395; A.S.A. 1947, § 77-512.

2-20-117. Rule of agency.

In construing and enforcing the provisions of this subchapter, the act, omission, or failure of any official, agent, or other person acting for or employed by any person, association, partnership, or corporation within the scope of his or her employment or office shall also be deemed in every case the act, omission, or failure of such person, association, partnership, or corporation as well as that of the official, agent, or person.

History. Acts 1925, No. 218, § 17; Pope's Dig., § 12399; A.S.A. 1947, § 77-516.

Subchapter 2 — Cotton and Cotton Gins

Cross References. Inspection of boilers, § 20-23-101 et seq.

Effective Dates. Acts 1901, No. 77, § 3: effective on passage.

Acts 1919, No. 447, § 5: effective on passage. Emergency declared. Approved Mar. 27, 1919.

Acts 1937, No. 318, § 3: approved Mar. 25, 1937. Emergency clause provided: “The theft of seed cotton and the selling thereof to ginners by the person stealing same being a serious menace to the cotton growing farmers of this state, it is necessary, in order to preserve the peace and safety of the state that the provisions of this act shall go into effect at once; and an emergency is therefore declared to exist and the provisions of this act shall be in force and effect from and after its passage.”

Research References

Am. Jur. 3 Am. Jur. 2d, Agri., § 48 et seq.

C.J.S. 3 C.J.S., Agri., § 200 et seq.

2-20-201. Public cotton gin defined.

All cotton gins in Arkansas which gin cotton other than that grown on the farm where the gin is located or on a farm owned or controlled by the operator of the gin are declared to be public cotton gins.

History. Acts 1919, No. 447, § 1; C. & M. Dig., § 10454; A.S.A. 1947, § 77-801.

2-20-202. Order in ginning.

  1. All public cotton gins in this state as defined in § 2-20-201 are required to gin all cotton brought to the gin for ginning in the order in which it is presented for ginning.
  2. Cotton offered for ginning from vehicles shall be ginned as provided and ahead of cotton stored in gin buildings if, at the time offered, it is in condition to be ginned.

History. Acts 1919, No. 447, § 2; C. & M. Dig., § 10455; A.S.A. 1947, § 77-802.

2-20-203. Method of ginning.

  1. All cotton ginned by public gins in this state, as defined in § 2-20-201, shall be ginned in such a manner as to make a good sample and to give a reasonable turnout according to the condition of the cotton and shall be paid for by the person having the cotton ginned at a reasonable price per one hundred pounds (100 lbs.) of seed cotton, plus the bagging and ties furnished by the ginner at a reasonable price.
  2. The seed from any cotton ginned shall be delivered to the person having it ginned at his or her request or may be purchased by the ginner at such price as may be agreed upon.

History. Acts 1919, No. 447, § 3; C. & M. Dig., § 10456; A.S.A. 1947, § 77-803.

2-20-204. Remedies for refusing to gin.

    1. Any person, firm, or corporation operating any public gin in this state as defined in § 2-20-201 who shall fail or refuse to gin cotton as required by §§ 2-20-202 and 2-20-203 shall be guilty of a violation.
    2. Upon conviction, an offender shall be fined in any sum not less than twenty-five dollars ($25.00) nor more than fifty dollars ($50.00).
    3. Each violation of this section shall constitute a separate offense.
  1. In addition to the fine, the offender shall be liable for double damages to the person aggrieved in a civil action.

History. Acts 1919, No. 447, § 4; C. & M. Dig., § 10457; A.S.A. 1947, § 77-804; Acts 2005, No. 1994, § 13.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (a)(1).

2-20-205. Records of seed cotton.

  1. Every person or corporation owning or operating any cotton gin within this state shall make and keep in a well-bound book a record of all seed cotton purchased at or for the gin, which shall show the:
    1. Name and address of the seller;
    2. Amount of seed cotton purchased;
    3. Date purchased; and
    4. Purchase price.
  2. The record shall be open at all times for inspection by any justice of the peace, constable, deputy constable, sheriff, deputy sheriff, prosecuting attorney, or deputy prosecuting attorney.

History. Acts 1937, No. 318, § 1; Pope's Dig., § 3064; A.S.A. 1947, § 77-805.

2-20-206. Failure to keep gin record.

Any person or corporation owning or operating any gin within the State of Arkansas who shall fail to make and keep the record required in § 2-20-205 or who shall refuse or fail to permit its inspection by any of the officers mentioned in § 2-20-205 shall be deemed guilty of a misdemeanor. Upon conviction, an offender shall be fined in any sum not less than ten dollars ($10.00) nor more than one thousand dollars ($1,000).

History. Acts 1937, No. 318, § 2; Pope's Dig., § 3065; A.S.A. 1947, § 77-806.

2-20-207. Record of cotton weighed.

  1. All persons weighing cotton for the public in this state and receiving compensation therefor shall be required to keep a book or record of all cotton weighed by them, giving:
    1. The weight and marks of each bale;
    2. For whom weighed; and
    3. To whom sold where the purchaser is known to the weigher.
  2. The book or record shall be kept subject to inspection by the public.

History. Acts 1901, No. 77, § 1, p. 130; C. & M. Dig., § 2446; Pope's Dig., § 3068; A.S.A. 1947, § 77-811.

2-20-208. Failure to keep weighing record.

Any weigher who shall refuse to keep books or records or who shall, on demand of any person, fail or refuse to exhibit them shall be guilty of a misdemeanor. Upon conviction, an offender shall be fined in any sum not less than fifty dollars ($50.00) nor more than one hundred dollars ($100).

History. Acts 1901, No. 77, § 2, p. 130; C. & M. Dig., § 2446; Pope's Dig., § 3068; A.S.A. 1947, § 77-812.

Subchapter 3 — Labeling of Fruits and Vegetables for Interstate Shipment

Preambles. Acts 1947, No. 343 contained a preamble which read:

“Whereas, the neglect of proper labeling as to actual contents of packaged peaches, tomatoes, strawberries, Irish potatoes, and apples grown in Arkansas; and the attendant unfair and unethical practices of selling inferior products misrepresented as high grade perishables, has resulted in lower prices received by Arkansas producers than are received by growers in competing states, and a generally poor reputation for Arkansas grown products; and

“Whereas, reputable producers of these products in this state have suffered unfairly a consumer reaction against their products, the following act is proposed for their protection against such unfair marketing practices and in order that an improved and recognized quality of Arkansas packaged peaches, tomatoes, strawberries, Irish potatoes, and apples may be sold in competition with such products grown in other states … .”

Research References

Am. Jur. 3 Am. Jur. 2d, Agri., § 48 et seq.

C.J.S. 3 C.J.S., Agri., § 200 et seq.

2-20-301. Title.

This subchapter shall be known as the “Arkansas Fruit and Vegetable Labeling Act of 1947”, which is enacted in the exercise of the police powers of this state for the general welfare of the people of this state.

History. Acts 1947, No. 343, § 1; A.S.A. 1947, § 77-601.

2-20-302. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Closed package” means a barrel, box, basket, sack, carrier, or crate, of which all of the contents cannot readily be seen or inspected when the package is prepared for market;
  2. “Culls” means products which, on account of quality and condition, do not come within any of the above classifications or grades;
  3. “Persons” means individuals, partnerships, corporations, associations, or associations of two (2) or more individuals having a joint or common interest;
  4. “Places” means vessels, cars, and other vehicles, buildings, docks, railroad platforms, orchards, fields, and other premises where agricultural products are grown, kept, or handled;
  5. “Ripes” means products which are too ripe or soft, due to ripeness only, to ship, but which are satisfactory for short hauls and immediate consumption;
  6. “Ungraded” means products packaged which may be any combination of the United States standard grades or the grades established by this subchapter and, in addition, may include field run and all other grades with only soft and decayed fruit excluded; and
  7. “Utility” or “combination” means products packaged which may be any combination of the United States standard grades or grades established by this subchapter.

History. Acts 1947, No. 343, § 9; A.S.A. 1947, § 77-610.

2-20-303. Applicability.

    1. The provisions of this subchapter are limited to peaches, tomatoes, strawberries, Irish potatoes, and apples which are grown and produced in Arkansas.
      1. Standard grades for products covered by this subchapter shall be limited to United States grades and shall conform in all respects and be identical with the latest standards established by the United States Secretary of Agriculture.
      2. The State Plant Board shall have authority to prescribe and promulgate an Arkansas Commercial or Utility Grade and other and additional grades of peaches.
  1. Standard grades for peaches shall be the standard United States grades and the additional Arkansas grades designated as Utility or Combination, and Unclassified, and Ripes.

History. Acts 1947, No. 343, §§ 2A, 3; A.S.A. 1947, §§ 77-603, 77-604.

2-20-304. Transactions excepted.

This subchapter shall not apply to products:

  1. Sold directly by a producer to consumer;
  2. Sold by a producer in consumer packages or in bulk to retail trade exclusively in Arkansas; and
  3. In transit from point of origin to a place of processing, further grading, or conditioning within Arkansas.

History. Acts 1947, No. 343, § 7; A.S.A. 1947, § 77-608.

2-20-305. Penalties.

Each person who by himself or herself or through his or her agent or employee violates any provision of this subchapter shall be guilty of a Class C misdemeanor for each offense.

History. Acts 1947, No. 343, § 8; A.S.A. 1947, § 77-609; Acts 2005, No. 1994, § 403.

Amendments. The 2005 amendment deleted the subsection (a) designation; inserted “or herself”, “or her”, and “Class C”; and deleted former (b).

2-20-306. Administration.

The State Plant Board shall administer and enforce the provisions of this subchapter.

History. Acts 1947, No. 343, § 2; A.S.A. 1947, § 77-602.

2-20-307. Marking of closed containers.

  1. It shall be unlawful for any person to expose or offer for sale or have in his or her possession for sale or sell, transport, deliver, or consign any product covered by this subchapter in a closed package unless the container has been plainly marked or tagged in an indelible manner showing:
    1. The name and address of the producer, shipper, or other person responsible for packing the product;
    2. Contents in terms of net weight, measure, or numerical count and variety, state of origin, minimum size, etc., depending on the product; and
    3. The official grade of the product.
  2. If the product does not conform to an official grade, the package or tag shall be marked “UNGRADED” or “CULLS”, as the case may be.
  3. All markings shall be not less than one-fourth inch (¼") in height, except that “CULLS” must be marked in letters not less than one inch (1") in height.

History. Acts 1947, No. 343, § 4; A.S.A. 1947, § 77-605.

2-20-308. False representations.

  1. It shall be unlawful for any person to expose or offer for sale or sell, transport, deliver, or consign, or have in his or her possession for sale products covered by this subchapter packed in a closed package in which the label or exposed surface gives a false representation of the contents of the package.
  2. It shall be considered a false representation if the exposed surface does not reasonably represent the size, quality, and varietal characteristics of the remaining portions of the package.

History. Acts 1947, No. 343, § 5; A.S.A. 1947, § 77-606.

2-20-309. Used containers.

It shall be unlawful for any person to expose, or offer for sale or sell, transport, deliver, consign, or have in his or her possession for sale products covered by this subchapter which are packed in used containers unless the used containers are clean, sanitary, and otherwise adequate for use in the trade and all prior labelings or markings are erased or obliterated.

History. Acts 1947, No. 343, § 6; A.S.A. 1947, § 77-607.

2-20-310. Right of inspection.

For the purpose of carrying out the provisions and requirements of this subchapter, the State Plant Board and its inspectors shall have power to enter into or upon any place and to open any bundle, package, or container of agricultural products.

History. Acts 1947, No. 343, § 11; A.S.A. 1947, § 77-611.

Subchapter 4 — Soybean Promotion

Effective Dates. Acts 1971, No. 259, § 9: July 1, 1971.

Acts 1989, No. 102, § 4: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is essential to the soybean promotion in Arkansas that the assessment on soybeans for research, promotion and market development be increased from one cent per bushel to two cents per bushel to provide necessary funds to fund the program; that this act is designed to provide such increase and in order to assure effective and efficient administration of the increase levy, it is essential that the act become effective at the beginning of the fiscal year, July 1, 1989. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall be in full force and effect on and after July 1, 1989.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-20-401. Purpose.

The purpose of this subchapter is to promote the growth and development of the soybean industry in Arkansas by research, extension, promotion, and market development, thereby promoting the general welfare of the people of Arkansas.

History. Acts 1971, No. 259, § 1; A.S.A. 1947, § 77-2001; Acts 1991, No. 340, § 1.

2-20-402. Definitions.

As used in this subchapter, unless the context otherwise requires:

  1. “Board” means the Arkansas Soybean Promotion Board created under this subchapter;
  2. “Net market price” means:
    1. The sales price or value received by a producer for soybeans after adjustments for any premium or discount based on grading or quality factors, as determined by the secretary; or
    2. For soybeans pledged as collateral for a loan issued under any price support loan program administered by the Commodity Credit Corporation, the principal amount of the loan;
  3. “Secretary” means the United States Secretary of Agriculture;
  4. “Soybean Promotion, Research and Consumer Information Act” means the federal Soybean Promotion, Research and Consumer Information Act of 1990, Subtitle E of Title XIX, of the Food, Agriculture, Conservation and Trade Act of 1990, P.L. No. 101-624, as amended from time to time, and any order issued pursuant thereto by the secretary; and
  5. “United Soybean Board” means the United Soybean Board created by the Soybean Promotion, Research and Consumer Information Act.

History. Acts 1991, No. 340, § 2.

Publisher's Notes. Former § 2-20-402, concerning the applicability of the subchapter, was repealed by Acts 1991, No. 340, § 2. The former section was derived from Acts 1971, No. 259, § 5; A.S.A. 1947, § 77-2005.

U.S. Code. The Soybean Promotion, Research and Consumer Information Act, referred to in this section, is codified as 7 U.S.C. § 6301 et seq.

2-20-403. Penalties.

    1. Any first purchaser or other person required to pay an assessment under this subchapter who fails to pay any assessment when due shall forfeit a penalty of two percent (2%) of the assessment each month beginning the day following the date the assessment was due.
    2. The penalty shall be paid to the Arkansas Soybean Promotion Board or to its designee, the Secretary of the Department of Finance and Administration, and shall be disposed of in the same manner as funds derived from the payment of an assessment as provided in this subchapter.
  1. The board or its designee shall collect the penalty levied in this section, together with the delinquent assessment, by any and all of the following methods:
    1. Voluntary payment by the person liable;
    2. Legal proceedings instituted in a court of competent jurisdiction; or
    3. Injunctive relief to enjoin any person owing the assessment or penalty from operating his or her business or engaging in business as a buyer or seller of soybeans until the delinquent assessment or penalty is paid.
    1. Any person required to pay the assessment provided for in this subchapter who refuses to allow full inspection of the premises or any book, record, or other document relating to the liability of the person for the assessment imposed or who shall hinder or in any way delay or prevent the inspection shall be guilty of a violation.
    2. Upon conviction, an offender shall be punished by a fine not exceeding five hundred dollars ($500).

History. Acts 1971, No. 259, § 4; A.S.A. 1947, § 77-2004; Acts 1991, No. 340, § 3; 2005, No. 1994, § 14; 2019, No. 910, § 3272.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (c)(1).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(2).

2-20-404. Arkansas Soybean Promotion Board.

  1. The Arkansas Soybean Promotion Board is created. The board shall be composed of nine (9) producer members appointed by the Governor as follows:
      1. The Arkansas Farm Bureau Federation, Riceland Foods, Inc., Arkansas Soybean Association, and Agriculture Council of Arkansas shall submit the names of five (5) practical soybean producers to the Governor.
      2. The Governor shall appoint three (3) members from the list submitted by the Arkansas Farm Bureau Federation, and two (2) members from the list submitted by each of the other organizations named above to serve on the board.
      3. All of the nine (9) producer members of the board shall be practical producers of soybeans in the State of Arkansas and shall be nominated by their respective organizations;
    1. Each year, not less than thirty (30) days before the expiration of the terms of the current board members whose terms expire, the organizations named in subdivision (a)(1)(A) of this section shall submit to the Governor names of two (2) nominees for each position to be filled on the board from the respective organizations, and the Governor shall appoint the new members from each list of nominees; and
    2. Each member selected shall serve for a term of two (2) years and until his or her successor is duly selected as provided in this section.
  2. The members of the board shall meet and organize immediately after their appointment and shall elect a chair, a vice chair, and a secretary-treasurer from the membership of the board, whose duties shall be those customarily exercised by those officers or specifically designated by the board. The principal office of the board shall be located at the office of the Arkansas Farm Bureau Federation, in Little Rock.
  3. The board may establish rules for its own government and for the administration of the affairs of the board.
  4. The board is designated as the qualified state soybean board to represent the State of Arkansas under the Soybean Promotion, Research and Consumer Information Act of 1990.

History. Acts 1971, No. 259, § 2; 1979, No. 355, § 1; A.S.A. 1947, § 77-2002; Acts 1991, No. 340, § 4; 1999, No. 351, § 1.

Publisher's Notes. Acts 1971, No. 259, § 2 provided in part, that the initial members selected from the Arkansas Farm Bureau Federation would draw lots to determine their terms so that two of the members would serve for two-year terms and one would serve for a one-year term while the members from each of the other organizations would draw lots for terms so that one would serve for a one-year term and one would serve for a two-year term.

U.S. Code. The Soybean Promotion, Research and Consumer Information Act, referred to in (d), is codified as 7 U.S.C. § 6301 et seq.

Cross References. Division of Agriculture — Service on boards or commissions, § 6-64-106.

2-20-405. Arkansas Soybean Promotion Board — Powers.

  1. The Arkansas Soybean Promotion Board shall have power:
    1. To conduct plans, projects, or activities that are intended to strengthen the soybean industry's position in the marketplace;
    2. To report to the United Soybean Board the manner in which assessments are collected and the procedure utilized to ensure that assessments due are paid;
    3. To collect assessments paid on soybeans marketed within the state and to establish procedures for ensuring compliance with regard to the payment of such assessments; provided, that the Arkansas Soybean Promotion Board may designate the Secretary of the Department of Finance and Administration to collect assessments and ensure compliance with regard to the payment of such assessments, subject to such rules as may be promulgated by the Arkansas Soybean Promotion Board and as may be reasonably necessary to comply with the Soybean Promotion, Research and Consumer Information Act of 1990;
    4. To remit to the United Soybean Board any assessments paid under this subchapter and the Soybean Promotion, Research and Consumer Information Act of 1990, minus authorized credits and other required deductions, by the last day of the month following the month in which the assessment was paid, unless the United Soybean Board determines a different date for remittance of assessments;
    5. To pay refunds of assessments as required by the United States Secretary of Agriculture or as authorized by this subchapter and determined by the Arkansas Soybean Promotion Board;
    6. To establish escrow accounts to be held and administered as special fund accounts by the Treasurer of State, for the payment of refunds in such amounts and for such periods as required by the United States Secretary of Agriculture or as authorized by this subchapter and determined by the Arkansas Soybean Promotion Board; provided, that interest from such accounts shall accrue to the Arkansas Soybean Promotion Board to be used for authorized activities;
    7. To furnish the United Soybean Board with an annual report by a certified public accountant or an authorized state agency of all funds remitted to the United Soybean Board;
    8. To receive and certify petitions as provided in § 2-20-406(b)(3) and to conduct a referendum election or elections under this subchapter or the Soybean Promotion, Research and Consumer Information Act of 1990;
    9. To exempt by resolution a class of persons who purchase one thousand (1,000) or fewer bushels of soybeans in any calendar year from the assessment imposed by § 2-20-406(b)(1);
    10. To contract with the United Soybean Board or other persons to implement plans or projects under this subchapter and the Soybean Promotion, Research and Consumer Information Act of 1990; and
    11. To take such further action as may be necessary or appropriate to comply with and to administer this subchapter and the Soybean Promotion, Research and Consumer Information Act of 1990.
  2. The Arkansas Soybean Promotion Board shall not use funds collected or received under this subchapter or the Soybean Promotion, Research and Consumer Information Act of 1990:
    1. To fund plans or projects which make use of any unfair or deceptive acts or practices with respect to the quality, value, or use of any product that competes with soybeans or soybean products; or
    2. To influence any action or policy of the United States Government, any foreign or state government, or any political subdivision thereof; provided, however, that this subdivision (b)(2) shall not apply to:
      1. The communication to appropriate government officials of information relating to the conduct, implementation, or results of promotion, research, consumer information, and industry information;
      2. Any action designed to market soybeans or soybean products directly to a foreign government or a political subdivision thereof; or
      3. The development and recommendation of amendments to this subchapter or the Soybean Promotion, Research and Consumer Information Act of 1990.

History. Acts 1991, No. 340, § 5; 2019, No. 910, § 3273.

Publisher's Notes. Former § 2-20-405, concerning the holding and conduct of a referendum in each county by the Arkansas Soybean Promotion Board, was repealed by Acts 1989, No. 102, § 3. The former section was derived from Acts 1971, No. 259, § 3; 1979, No. 355, §§ 2, 3; A.S.A. 1947, § 77-2003.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(3).

U.S. Code. The Soybean Promotion, Research and Consumer Information Act, referred to in this section, is codified as 7 U.S.C. § 6301 et seq.

2-20-406. Assessments on Arkansas-grown soybeans.

    1. Except as otherwise prescribed by regulations approved by the United States Secretary of Agriculture or the Arkansas Soybean Promotion Board, each person purchasing from, and making payment to, a producer for soybeans produced by such producer and marketed for commercial use, including, in any case in which soybeans are pledged as collateral for a loan issued under any federal price support loan program, the Commodity Credit Corporation, shall be a first purchaser and shall collect an assessment from the producer, and each producer shall pay such assessment to the first purchaser, at the applicable rate prescribed in this section. Each first purchaser shall remit such assessment to the Arkansas Soybean Promotion Board or to its designee, the Secretary of the Department of Finance and Administration. For the purpose of this section, purchases from a producer of soybeans or contracts with a producer for production of soybeans for livestock feed or any other application shall constitute marketing for commercial use.
    2. Any producer marketing processed soybeans or soybean products of that producer's own production to consumers, either directly or through retail or wholesale outlets, or for export purposes, shall remit the assessment as required by this section.
    1. Effective July 1, 1989, there is imposed and levied an assessment at the rate of two cents (2¢) per bushel on all soybeans grown within the State of Arkansas. The assessment shall be deducted from the amount paid the producer at the first point of sale, whether within or without the state, or at the point the soybeans enter into the United States Department of Agriculture loan program.
    2. Notwithstanding subdivision (b)(1) of this section, if an assessment is made under the Soybean Promotion, Research and Consumer Information Act of 1990 upon soybeans grown within the State of Arkansas, then, for so long as such assessment is effective, the assessment imposed and levied under this section shall be twenty-five hundredths of one percent (0.25%) of the net market price of all soybeans grown within the State of Arkansas. The assessment of twenty-five hundredths of one percent (0.25%) shall not be in addition to the national assessment, but is intended to correspond to the state credit for assessments paid to a qualified state soybean board under the Soybean Promotion, Research and Consumer Information Act of 1990. If an assessment under the Soybean Promotion, Research and Consumer Information Act of 1990 shall cease to be effective, then, for so long as no such assessment is made, the assessment imposed and levied under this section shall be as provided in subdivision (b)(1) of this section.
      1. So long as the assessment on soybeans provided for in this section is two cents (2¢) per bushel, the question of the levy of the two-cents-per-bushel assessment on soybeans may be referred to a vote of the soybean producers of the state by the filing of petitions with the Arkansas Soybean Promotion Board containing signatures of Arkansas soybean producers equal in number to fifteen percent (15%) of all soybean producers in the state.
      2. If the petitions are filed and at the referendum election a majority of the Arkansas soybean producers voting on the question vote against the levy of two cents (2¢) per bushel on soybeans, the assessment shall not thereafter be levied.
      3. Only those soybean producers who produce soybeans in Arkansas in the crop year immediately preceding the referendum election shall be eligible to vote in the election.
    1. The proceeds of the assessment shall be deposited with the Treasurer of State into a special fund to be established for the Arkansas Soybean Promotion Board; provided, that the Secretary of the Department of Finance and Administration may deduct not more than three percent (3%) to cover the cost of collections.
    2. Disbursement shall be made only upon motion duly passed by the Arkansas Soybean Promotion Board and presented to the Treasurer of State and only for the purposes prescribed in this subchapter.

History. Acts 1971, No. 259, § 3; 1979, No. 355, §§ 2, 3; A.S.A. 1947, § 77-2003; Acts 1989, No. 102, § 1; 1991, No. 340, § 6; 2019, No. 910, §§ 3274, 3275.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the second sentence of (a)(1); and substituted “secretary” for “director” in (c)(1).

U.S. Code. The Soybean Promotion, Research and Consumer Information Act, referred to in this section, is codified as 7 U.S.C. § 6301 et seq.

2-20-407. Reports — Books and records.

  1. Each person responsible for the collection and remittance of assessments under § 2-20-406(a) shall report to the Arkansas Soybean Promotion Board such information as may be required from time to time by rules approved by the United States Secretary of Agriculture or the board. Such information may include, but not be limited to, the following:
    1. The number of bushels of soybeans purchased, initially transferred, or which, in any other manner, is subject to the collection of the assessment;
    2. The amount of assessments remitted;
    3. The basis, if necessary, to show why the remittance is less than the applicable rate of the assessment per bushel of soybeans purchased multiplied by the number of bushels purchased; and
    4. The date any assessment was paid.
    1. Each person who is subject to this subchapter shall maintain and make available for inspection by the United States Department of Agriculture, the board or its designee, the Secretary of the Department of Finance and Administration, such books and records as are necessary to carry out the provisions of this subchapter and the rules issued thereunder, including such records as are necessary to verify any reports required. Such records shall be retained for at least two (2) years beyond the fiscal period of their applicability.
    2. Any producer who plants less than twenty-five (25) acres of soybeans annually shall not be required to maintain books or records under this section.
  2. All information obtained from books, records, or reports required to be filed or kept under this section shall be kept confidential by all persons, including employees and former employees of the board, all officers and employees and all former officers and employees of the Department of Finance and Administration, and by all officers and employees and all former officers and employees of contracting parties having access to such information, and shall not be available to board members or any other producers. Only those persons having a specific need for such information in order to effectively administer the provisions of this subchapter shall have access to such information. In addition, only such information so furnished or acquired as the United States Department of Agriculture or the board deems relevant shall be disclosed by them, and then only in a suit or administrative hearing brought at the direction, or upon the request, of the United States Department of Agriculture or the board, or to which the United States Department of Agriculture, any officer of the United States, the board, or the Secretary of the Department of Finance and Administration, is a party. This section shall not be deemed to prohibit:
    1. The issuance of general statements based upon the reports of the number of persons subject to this subchapter or statistical data collected therefrom, which statements do not identify the information furnished by any person; and
    2. The publication, by direction of the United States Secretary of Agriculture or the board, of the name of any person who has been adjudged to have violated this subchapter, together with a statement of the particular provisions of the subchapter violated by such person.

History. Acts 1971, No. 259, § 3; 1979, No. 355, §§ 2, 3; A.S.A. 1947, § 77-2003; Acts 1991, No. 340, § 7; 2019, No. 910, §§ 3276, 3277.

Amendments. The 2019 amendment substituted “United States Department of Agriculture, the board or its designee, the Secretary of the Department of Finance and Administration” for “secretary, the board or its designee, the Director of the Department of Finance and Administration” in the first sentence of (b)(1); and, in the third sentence of (c), substituted “United States Department of Agriculture” for “secretary” three times and substituted “Secretary of the Department of Finance and Administration” for “director”.

2-20-408. Refunds to producers.

  1. So long as the assessment on soybeans is as provided in § 2-20-406(b)(1), any soybean producer may request and receive a refund of such assessment, provided he or she makes a written application therefor with the Arkansas Soybean Promotion Board or its designee, the Secretary of the Department of Finance and Administration, within forty-five (45) days from the date of sale, supported by copies of sales slips signed by the purchaser, and provided further, that the application is filed before the annual accounting is made of the funds not later than July 1 each year.
  2. So long as the assessment on soybeans is as provided in § 2-20-406(b)(2), any soybean producer may request and receive a refund of such assessment to the extent provided by the Soybean Promotion, Research and Consumer Information Act of 1990. Such producer shall make written application therefor with the board or its designee, the secretary, within forty-five (45) days from the date the assessment was due from such producer, supported by copies of sales slips signed by the purchaser.

History. Acts 1971, No. 259, § 3; 1979, No. 355, §§ 2, 3; A.S.A. 1947, § 77-2003; Acts 1991, No. 340, § 8; 2019, No. 910, § 3278.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a); and substituted “secretary” for “director” in the second sentence of (b).

U.S. Code. The Soybean Promotion, Research and Consumer Information Act, referred to in this section, is codified as 7 U.S.C. § 6301 et seq.

2-20-409. Promotion program — Use of funds.

  1. The Arkansas Soybean Promotion Board shall administer this subchapter to promote the soybean industry in Arkansas and shall be vested with the authority and discretion to determine administrative or program implementation and administrative or program expenditure allocations.
      1. The board is authorized to use the funds derived from the assessments imposed in this subchapter for research, extension, market development, and advertising designed to promote the soybean industry in Arkansas, including administration expenses.
      2. Use of these funds may be applied, as prescribed in this section, within or without Arkansas, including regional, national, and international applications.
    1. The funds may also be used to defray costs of referenda.

History. Acts 1971, No. 259, § 6; A.S.A. 1947, § 77-2006; Acts 1991, No. 340, § 9.

Subchapter 5 — Rice Promotion

A.C.R.C. Notes. On July 15, 1999, the Arkansas Supreme Court affirmed the chancery court decree which invalidated the buyer's asessment levied under § 2-20-511. Tim Leathers, Comm'r of Revenues, et al v. Gulf Rice Arkansas, Inc. and Gulf Pacific Rice Co., Inc., No. 98-737 (Ark. Sup. Ct. July 15, 1999). Accordingly, pursuant to Acts 1999, No. 16, § 10, the effective date of 1999, No. 16, is July 15, 1999.

Effective Dates. Acts 1985, No. 725, § 10: Aug. 1, 1985.

Acts 1999, No. 16, § 10: July 15, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that the Arkansas Rice Research and Promotion Act of 1985 is currently subject to litigation; if the assessment levied under that act is ruled invalid substantial damage to the efforts of marketing Arkansas produced rice will result; that this act provides an assessment which is less subject to attack and will assure the continued funding for the program to promote the sale of Arkansas produced rice; and this act should therefore go into effect at the time the existing assessment is ruled invalid if that occurs. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto. However if the occurrences just described occur prior to a court of competent jurisdiction invalidating the current assessment for Rice Research and Promotion, this act shall become effective at the time of that court decision unless the decision occurs later than ninety-one (91) days after adjournment of this regular session in which case this case will become effective ninety-one (91) days after adjournment of the session.”

Acts 2005, No. 852, § 3: Mar. 15, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act clarifies the use of funds from assessments on grown rice; and that this act is immediately necessary in order to avoid future controversies and to ensure the proper use of the funds. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-20-501. Title.

This subchapter shall be known and may be cited as the “Arkansas Rice Research and Promotion Act of 1999”.

History. Acts 1985, No. 725, § 1; A.S.A. 1947, § 77-2501; Acts 1999, No. 16, § 1.

2-20-502. Purpose.

The purpose of this subchapter is to promote the growth and development of the rice industry in Arkansas by research, extension, promotion, and market development, thereby promoting the general welfare of the people of Arkansas.

History. Acts 1985, No. 725, § 2; A.S.A. 1947, § 77-2502.

2-20-503. Applicability.

The provisions of this subchapter shall not apply to any person who purchases one thousand (1,000) or fewer bushels of rice in any calendar year.

History. Acts 1985, No. 725, § 6; A.S.A. 1947, § 77-2506.

2-20-504. Penalties.

    1. Any buyer who fails to file a report or pay any assessment within the required time set by the Secretary of the Department of Finance and Administration shall forfeit to the secretary a penalty of five percent (5%) of the assessment determined to be due plus one percent (1%) for each month of delay, or fraction of a month, after the first month after the report was required to be filed or the assessment became due.
    2. The penalty shall be paid to the secretary and shall be disposed of by him or her in the same manner as funds derived from the payment of the assessment imposed in this subchapter.
  1. The secretary shall collect the penalty levied in this subchapter, together with the delinquent assessment, by any or all of the following methods:
    1. Voluntary payment by the person liable;
    2. Legal proceedings instituted in a court of competent jurisdiction; or
    3. Injunctive relief to enjoin any buyer owing an assessment or penalty from operating his or her business or engaging in business as a buyer of rice until the delinquent assessment or penalty is paid.
    1. Any person required to pay the assessment provided for in this subchapter who refuses to allow full inspection of the premises or any book, record, or other document relating to the liability of the person for the assessment imposed in this subchapter or who shall hinder or in any way delay or prevent the inspection shall be guilty of a violation.
    2. Upon conviction, an offender shall be punished by a fine not exceeding five hundred dollars ($500).

History. Acts 1985, No. 725, § 5; A.S.A. 1947, § 77-2505; Acts 2005, No. 1994, § 15; 2019, No. 910, § 3279.

Amendments. The 2005 amendment added “or” in (b)(2); and substituted “violation” for “misdemeanor” in (c)(1).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(1); and substituted “secretary” for “director” throughout (a) and (b).

2-20-505. Arkansas Rice Research and Promotion Board.

  1. The Arkansas Rice Research and Promotion Board is created.
    1. The board shall be composed of nine (9) producer members to be appointed by the Governor as follows:
      1. Three (3) members shall represent the Arkansas Farm Bureau Federation;
      2. Two (2) members shall represent Riceland Foods, Inc.;
      3. One (1) member shall represent the Agricultural Council of Arkansas;
      4. One (1) member shall represent Producers Rice Mill, Inc.;
      5. One (1) member shall represent the Arkansas Rice Council; and
      6. One (1) member shall represent the independent mills of Arkansas.
    2. All of the nine (9) producer members of the board shall be practical producers of rice in the State of Arkansas and shall be nominated by their respective organizations.
    3. Each year, not less than thirty (30) days before the expiration of the terms of the current board members whose terms expire in that year, the organizations named in subdivision (b)(1) of this section shall submit to the Governor names of two (2) nominees for each position to be filled on the board from the respective organizations, and the Governor shall appoint the new members from each list of nominees.
    4. Each member selected shall serve for a term of two (2) years and until his or her successor is duly selected as provided in this section.
  2. The members of the board shall meet and organize immediately after their appointment and shall elect a chair, a vice chair, and a secretary-treasurer from the membership of the board, whose duties shall be those customarily exercised by those officers or specifically designated by the board. All officers shall serve for a period of one (1) year and until their successors are duly elected.
  3. The board may establish rules for its own government and for the administration of affairs of the board.
  4. The resident agent of the board shall be the executive vice president, Arkansas Farm Bureau Federation, or his or her designee.

History. Acts 1985, No. 725, § 3; A.S.A. 1947, § 77-2503; Acts 1999, No. 16, § 2.

Publisher's Notes. Acts 1985, No. 725, § 3, provided, in part, that within ten days after August 1, 1985, each of the organizations named in this section should submit the names of two practical rice producers to the Governor for each position to be appointed from nominations of the respective organization. The Governor was to appoint three members from the list submitted by the Arkansas Farm Bureau Federation, Inc., two members from the list submitted by Riceland Foods, Inc., one member representing Agricultural Council of Arkansas, one member representing Producers Rice Mill, Inc., one member representing Arkansas Rice Council, and one member representing the Independent Millers of Arkansas to serve on the board. The members selected from the Arkansas Farm Bureau Federation, Inc., were to draw lots to determine their terms so that two of them would serve for terms of two years and one would serve for a term of one year. The members selected from Riceland Foods, Inc., were to draw lots so that one would serve for a term of one year and one serve for a term of two years. The members from the other organizations were to draw lots for terms so that two would serve for terms of one year and two would serve for terms of two years.

Cross References. Division of Agriculture — Service on boards or commissions, § 6-64-106.

2-20-506. [Repealed.]

Publisher's Notes. Former § 2-20-506, concerning the referendum in each county, was repealed by Acts 1999, No. 16, § 3. The section was derived from the following sources: Acts 1985, No. 725, § 4; A.S.A. 1947, § 77-2504.

2-20-507. Assessments on grown rice.

  1. There are imposed and levied:
    1. An assessment at the rate of one and thirty-five hundredths cents (1.35¢) per bushel to be paid by the buyer at the first point of sale, whether within or without the state, on rice grown within the state or at the point the rice enters into the United States Department of Agriculture loan program; and
    2. An assessment at the rate of one and thirty-five hundredths cents (1.35¢) per bushel to be paid by the producer on all rice grown within this state.
  2. The assessment imposed and levied by this section shall be collected by the Secretary of the Department of Finance and Administration from the buyer of rice at the first point of sale or at the point the rice enters into the United States Department of Agriculture loan program.
    1. The proceeds of the assessment, less not more than three percent (3%) to cover the cost of collections, shall be deposited with the Treasurer of State in a special fund to be established for the Arkansas Rice Research and Promotion Board to the credit of the board.
    2. Disbursement shall be made only upon a motion duly passed by the board and presented to the Treasurer of State and only for a purpose prescribed in this subchapter.
    1. The funds derived from the assessment paid by a buyer at the first point of sale shall be used for:
      1. Market development and promotion;
      2. Basic administration expenses; and
      3. Defraying the costs of referenda that the board may refer to buyers of rice.
    2. The funds derived from the assessment paid by a producer shall be used for:
      1. Rice extension and rice research;
      2. Basic administration expenses; and
      3. Defraying the costs of referenda that the board may refer to producers of rice.
    3. Funds under subdivisions (d)(1) and (2) of this section may be applied within or without Arkansas, including regional, national, and international applications.

History. Acts 1985, No. 725, § 4; A.S.A. 1947, § 77-2504; Acts 1999, No. 16, § 4; 2005, No. 852, § 1; 2019, No. 910, § 3280.

Amendments. The 2005 amendment added (d).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (b).

Research References

U. Ark. Little Rock L. Rev.

McCorkle, Constitutional Law — Arkansas' Nondelegation Doctrine: The Arkansas Supreme Court Defines a Limit on the Delegation of Legislative Authority to a Private Party, 23 U. Ark. Little Rock L. Rev. 297.

2-20-508. Records and other documentation.

    1. Every buyer shall keep a complete and accurate record of all rice handled by him or her.
    2. The records shall be in such form and contain other information as the Arkansas Rice Research and Promotion Board shall prescribe by rule.
    3. The record shall be preserved for a period of one (1) year and shall be offered for inspection at any time upon written demand by the Secretary of the Department of Finance and Administration or any duly authorized agent or representative of him or her.
    1. At such times as the secretary may require, every buyer shall submit reports or otherwise document any information deemed necessary for the efficient collection of the assessment imposed in this subchapter.
    2. The secretary shall have the power to cause any duly authorized agent or representative to enter upon the premises of any buyer of rice and examine or cause to be examined by the agent any books, papers, and records which deal in any way with respect to the payment of the assessment or enforcement of the provisions of this subchapter.

History. Acts 1985, No. 725, § 4; A.S.A. 1947, § 77-2504; Acts 2019, No. 315, § 19; 2019, No. 910, §§ 3281, 3282.

Amendments. The 2019 amendment by No. 315 deleted “or regulation” following “rule” in (a)(2).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(3); and substituted “secretary” for “director” in (b)(1) and (2).

2-20-509. [Repealed.]

Publisher's Notes. This section, concerning refunds to producers, was repealed by Acts 1999, No. 16, § 5. The section was derived from Acts 1985, No. 725, § 4; A.S.A. 1947, § 77-2504.

2-20-510. Promotion and research programs.

The Arkansas Rice Research and Promotion Board shall plan and conduct a program of research, extension, market development, and advertising designed to promote the rice industry in Arkansas.

History. Acts 1985, No. 725, § 7; A.S.A. 1947, § 77-2507; Acts 1999, No. 16, § 6; 2005, No. 852, § 2.

Amendments. The 2005 amendment deleted the subdivision (a) designation; and deleted former (b).

2-20-511. [Repealed.]

Publisher's Notes. This section, concerning a referendum for alternative assessment on grown rice, was repealed by Acts 2001, No. 1553, § 2. The section was derived from Acts 1995, No. 344, § 1.

Subchapter 6 — Wheat Promotion

Effective Dates. Acts 1985, No. 283, § 9: Aug. 1, 1985.

Acts 1995, No. 107, § 6: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that the increase in the Wheat Promotion Board Assessment should apply to the current year's crop; and that unless this act goes into effect on July 1, 1995, a substantial portion of the crop will not be subject to the increased assessment levied by this act. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1995.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

2-20-601. Purpose.

The purpose of this subchapter is to promote the growth and development of the wheat industry in Arkansas by research, extension, promotion, and market development, thereby promoting the general welfare of the people of Arkansas.

History. Acts 1985, No. 283, § 1; A.S.A. 1947, § 77-2401.

2-20-602. Applicability.

The provisions of this subchapter shall not apply to any person who purchases one thousand (1,000) or fewer bushels of wheat in any calendar year.

History. Acts 1985, No. 283, § 5; A.S.A. 1947, § 77-2405.

2-20-603. Penalties.

    1. Any buyer who fails to file a report or pay any assessment within the required time set by the Secretary of the Department of Finance and Administration shall forfeit to the secretary a penalty of five percent (5%) of the assessment determined to be due plus one percent (1%) for each month of delay, or fraction of a month, after the first month after the report was required to be filed or the assessment became due.
    2. The penalty shall be paid to the secretary and shall be disposed of by him or her in the same manner as funds derived from the payment of the assessment imposed in this subchapter.
  1. The secretary shall collect the penalty levied in this subchapter, together with the delinquent assessment, by any or all of the following methods:
    1. Voluntary payment by the person liable;
    2. Legal proceedings instituted in a court of competent jurisdiction; or
    3. Injunctive relief to enjoin any buyer owing an assessment or penalty from operating his or her business or engaging in business as a buyer of wheat until the delinquent assessment or penalty is paid.
    1. Any person required to pay the assessment provided for in this subchapter who refuses to allow full inspection of the premises or any book, record, or other document relating to the liability of the person for the assessment imposed in this subchapter or who shall hinder or in any way delay or prevent the inspection shall be guilty of a violation.
    2. Upon conviction, an offender shall be punished by a fine not exceeding five hundred dollars ($500).

History. Acts 1985, No. 283, § 4; A.S.A. 1947, § 77-2404; Acts 2005, No. 1994, § 16; 2019, No. 910, §§ 3283, 3284.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (c)(1).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(1); and substituted “secretary” for “director” throughout (a) and (b).

2-20-604. Arkansas Wheat Promotion Board.

  1. The Arkansas Wheat Promotion Board is created.
    1. The board shall be composed of nine (9) producer members to be appointed by the Governor as follows:
      1. Three (3) members shall represent the Arkansas Farm Bureau Federation;
      2. Two (2) members shall represent Riceland Foods, Inc.;
      3. Two (2) members shall represent the Arkansas Association of Wheat Growers; and
      4. Two (2) members shall represent the Agricultural Council of Arkansas.
    2. All of the nine (9) members of the board shall be practical producers of wheat in the State of Arkansas and shall be nominated by their respective organizations.
    3. Each year, not less than thirty (30) days before the expiration of the terms of the current board members whose terms expire in that year, the organizations named above shall submit to the Governor names of two (2) nominees for each position to be filled on the board from the respective organizations, and the Governor shall appoint the new members from each list of nominees.
    4. Each member selected shall serve for a term of two (2) years and until his or her successor is duly selected as provided in this section.
  2. The members of the board shall meet and organize immediately after their appointment and shall elect a chair, a vice chair, and a secretary-treasurer from the membership of the board, whose duties shall be those customarily exercised by those officers or specifically designated by the board.
  3. The board may establish rules for its own government and for the administration of affairs of the board.

History. Acts 1985, No. 283, § 2; A.S.A. 1947, § 77-2402; Acts 1999, No. 351, § 2.

Publisher's Notes. Acts 1985, No. 283, § 2, provided, in part:

“The Arkansas Wheat Promotion Board is created to be domiciled in Little Rock, Arkansas, 10720 Kanis Road, to be composed of nine producer members to be appointed by the Governor as herein provided.”

Acts 1985, No. 283, § 2, also provided, in part, that, within ten days after August 1, 1985, each of the organizations named in this section should submit the names of five practical wheat producers to the Governor and that he or she should appoint three members from the list submitted by the Arkansas Farm Bureau Federation, Inc., and two members from the lists submitted by each of the other organizations to serve on the board. The members selected from the Arkansas Farm Bureau Federation, Inc., were to draw lots to determine their terms so that two of them would serve for terms of two years and one would serve for a term of one year. The members from each of the other organizations would draw lots for terms so that one would serve for a term of one year and one would serve for a term of two years.

2-20-605. Referendum in each county.

  1. The Arkansas Wheat Promotion Board shall appoint three (3) wheat producers from each county who will be responsible for holding a referendum in the county.
  2. The board will set the dates for the referendum.
  3. In all such referenda, in order to be eligible to vote, the producer must have produced wheat in the crop year immediately preceding the referendum.
  4. Voting shall be in United States Farm Service Agency offices under supervision of the three (3) producers appointed to hold the referendum.
  5. Ballots will be furnished by the board.
  6. The results shall be certified not more than three (3) days after election, on forms furnished by the board, by registered mail to the board.
  7. The board shall be reimbursed from funds collected for costs of holding referenda.

History. Acts 1985, No. 283, § 3; A.S.A. 1947, § 77-2403.

2-20-606. Assessments on grown wheat.

    1. There is imposed and levied an assessment at the rate of one cent (1¢) per bushel on all wheat grown within the state.
    2. This assessment shall be deducted from the amount paid the producer at the first point of sale, whether within or without the state, or at the point the wheat enters into the United States Department of Agriculture loan program.
    3. This assessment may be extended for an indefinite period of time or until twenty percent (20%) of the producers ask for return of funds; then another referendum shall be called by the Arkansas Wheat Promotion Board in the manner set forth in this subchapter.
    1. The assessment imposed and levied by this section shall be collected by the Secretary of the Department of Finance and Administration from the buyer of wheat at the first point of sale or when the wheat enters the United States Department of Agriculture loan program.
      1. The proceeds of the assessment, less not more than three percent (3%) to cover cost of collections, shall be deposited with the Treasurer of State in a special fund to be established for the board to the credit of the board.
      2. Disbursement shall be made only upon motions duly passed by the board and presented to the Treasurer of State, and only for purposes prescribed in this subchapter.

History. Acts 1985, No. 283, § 3; A.S.A. 1947, § 77-2403; Acts 1995, No. 107, § 1; 2019, No. 910, § 3285.

A.C.R.C. Notes. As amended by Acts 1995, No. 107, § 1, subdivision (a)(1) ended: “from July 1, 1995.” Subdivision (a)(3) began: “The assessment imposed in this section shall be effective beginning July 1, 1995.”

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (b)(1).

2-20-607. Records and other documentation.

    1. Every buyer shall keep a complete and accurate record of all wheat handled by him or her.
    2. The records shall be in such form and contain other information as the Arkansas Wheat Promotion Board shall prescribe, by rule.
    3. The record shall be preserved for a period of one (1) year and shall be offered for inspection at any time upon written demand by the Secretary of the Department of Finance and Administration or any duly authorized agent or representative of him or her.
    1. At such times as the secretary may require, every buyer shall submit reports or otherwise document any information deemed necessary for the efficient collection of the assessment imposed in this subchapter.
    2. The secretary shall have the power to cause any duly authorized agent or representative to enter upon the premises of any buyer of wheat and examine or cause to be examined by the agent any books, papers, and records which deal in any way with respect to the payment of the assessment or enforcement of the provisions of this subchapter.

History. Acts 1985, No. 283, § 3; A.S.A. 1947, § 77-2403; Acts 2019, No. 910, §§ 3286, 3287.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(3); and substituted “secretary” for “director” in (b)(1) and (2).

2-20-608. Refunds to producers.

Any wheat producer may request and receive a refund of the amount deducted from the sale of his or her wheat if:

  1. He or she makes a written application with the Secretary of the Department of Finance and Administration within forty-five (45) days from the date of sale, supported by copies of sales slips signed by the purchaser; and
  2. The application is filed before the annual accounting is made of the funds not later than July 1 each year.

History. Acts 1985, No. 283, § 3; A.S.A. 1947, § 77-2403; Acts 2019, No. 910, § 3288.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (1).

2-20-609. Promotion program — Use of funds.

  1. The Arkansas Wheat Promotion Board shall plan and conduct a program of research, extension, market development, and advertising designed to promote the wheat industry in Arkansas.
      1. The board is authorized to use the funds derived from the assessments imposed in this subchapter for these purposes, including basic administration expenses of the plan.
      2. Use of these funds may be applied, as prescribed in this section, within or without the State of Arkansas, including regional, national, and international applications.
    1. The funds may also be used to defray costs of referenda.

History. Acts 1985, No. 283, § 6; A.S.A. 1947, § 77-2406.

2-20-610. Resident agent.

The resident agent of the Arkansas Wheat Promotion Board shall be the executive vice president of Arkansas Farm Bureau Federation, or his or her designee.

History. Acts 1995, No. 107, § 2.

Subchapter 7 — Regulation of Ginseng

Effective Dates. Acts 1985, No. 774, § 6: July 3, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that under federal law, the state must institute a program providing for the regulation of the harvesting and exportation of ginseng from the state or the federal government will prohibit all exportation of ginseng from the state; that in 1979, the General Assembly enacted legislation charging the State Forestry Commission with responsibility of regulating the harvesting and sale of ginseng; that it is now determined that it is more appropriate that such authority and responsibility be vested in the State Plant Board; that this act is designed to vest authority and responsibility regarding ginseng in the State Plant Board and that to assure the smooth, effective and efficient transfer of the authority from the Forestry Commission to the State Plant Board and to enable the State Plant Board to promulgate appropriate rules and regulations to carry out the purpose and intent of this act, it is desirable that this act be effective beginning July 1, 1985. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

2-20-701. Authority to regulate.

Effective July 1, 1985, the State Plant Board shall have the authority and responsibility to regulate the harvesting, sale, artificial propagation, and exportation of Panax quinquefolius, referred to in this subchapter as “ginseng”.

History. Acts 1985, No. 774, § 1; A.S.A. 1947, § 77-140.

2-20-702. Rules.

  1. The State Plant Board is authorized and directed to promulgate appropriate rules to enable it to effectively and efficiently carry out its responsibilities under this subchapter.
  2. Rules shall include, but shall not be limited to:
    1. Requirement of annual certification and registration of ginseng dealers and exporters;
    2. Requirement that ginseng dealers and exporters maintain records of all their purchases and sales of ginseng;
    3. The establishment of a limited ginseng harvesting season designed to promote and assure the survival of wild American ginseng in the state;
    4. Requirement to obtain a permit or certificate from the board by any person desiring to artificially propagate ginseng and to provide for the inspection of cultivated ginseng and ginseng nurseries in the state; and
    5. A requirement that a certificate of legal taking be attached to all ginseng exported from the state.

History. Acts 1985, No. 774, § 2; A.S.A. 1947, § 77-141.

2-20-703. Research program.

The State Plant Board shall cause to be initiated and maintained such continuing research program concerning ginseng in Arkansas as it may deem necessary or appropriate to promote and assure the continued health and survival of wild American ginseng in the state.

History. Acts 1985, No. 774, § 3; A.S.A. 1947, § 77-142.

2-20-704. Dealer license — Fee.

  1. Each person or entity desiring to engage in business as a ginseng dealer in this state shall annually make application for and obtain a license to do so from the State Plant Board.
  2. The annual license fee for a ginseng dealer license shall be fifty dollars ($50.00), which shall accompany the application for the license.

History. Acts 1985, No. 774, § 4; A.S.A. 1947, § 77-143.

2-20-705. Artificial propagation fee.